Arab Markets Show Resilience Amid Global Economic Challenges
Despite an overall decline in Arab markets, some exchanges demonstrated positive growth in September, as reported by the Arab Monetary Fund.
Damascus and Muscat Lead the Way
The Damascus Stock Exchange saw a remarkable 55.36 percent increase in trading volume, followed closely by the Muscat Stock Exchange with a rise of 54.67 percent. Abu Dhabi also showed strong performance with a 37.28 percent surge in trading value.
Market Resilience Amid Global Struggles
While some exchanges faced challenges, the overall market resilience in the Arab region contrasted sharply with struggles seen in Western markets, according to the AMF.
Key Highlights from the Report
The 51st edition of the report on Arab Financial Markets provided detailed insights into trading volumes and values across the region’s stock exchanges. Arab markets overall saw a 10.78 percent drop in trading volume and a 2.76 percent decline in trading value compared to the previous month.
Performance of the AMF Composite Index
The AMF’s composite index rose by 0.58 percent in September, settling at 496.70 points, indicating a mild but steady recovery across Arab exchanges.
Leading Performers and Markets in Decline
The Iraq Stock Exchange and Damascus Stock Exchange were standout performers in September, while the Palestine Exchange, Muscat, and Kuwait markets experienced declines.
Arab Markets vs. World Indices
Arab markets showed relatively positive performance compared to global indices, with some markets posting significant gains amid global economic challenges.
Central Bank Policies and Market Impacts
Several Arab central banks reduced interest rates following the US Federal Reserve’s decision to cut rates, aiming to maintain economic stability and investor confidence.
Oil and Gold Influence on Markets
Oil prices fell in September, while gold prices surged as investors sought safe-haven assets amid global economic uncertainty.
Market Capitalization Snapshot
Total market capitalization in the region increased by 0.53 percent compared to August, with Beirut’s stock exchange leading the growth. However, some markets experienced declines in market capitalization, reflecting ongoing economic adjustments.