Gulf shares start new year in upbeat mood, Egypt outperforms

Gulf shares start new year in upbeat mood, Egypt outperforms

Abu Dhabi’s index advanced 0.4 per cent on Monday, bolstered by a 0.6 per cent increase in the country’s largest lender First Abu Dhabi Bank.

By Reuters Published: Mon 2 Jan 2023, 8:58 PM

Most major Gulf equities got off to a good 2023 start on Monday, with Egypt outperforming regional peers, as investors shrugged off concerns about a potential recession, crude oil demand and the U.S. Fed hiking rates further.

The IMF warned on Sunday about a tougher year in 2023 for the global economy with the main engines of growth - the United States, Europe and China — all experiencing weakening activity.

The new year is going to be “tougher than the year we leave behind”, IMF managing director Kristalina Georgieva said on the CBS Sunday morning news program “Face the Nation.”

Crude prices, which are highly correlated with Gulf financial markets, swung wildly in 2022 and are expected to remain under pressure in 2023.

A Reuters poll showed on Friday 30 economists and analysts forecast Brent crude will average $89.37 a barrel in 2023, about 4.6 per cent lower than the $93.65 consensus in a November survey. The global benchmark averaged $99 per barrel in 2022.

Hawkish Fed rate hikes many pose another challenge