Egypt’s index outperforms regional peers

Egypt’s blue-chip index outperformed regional peers to close higher on Sunday, while Saudi and Qatari stocks slipped on weakness in the financial and petrochemical sectors.

Oil prices, which fuel the region’s growth, fell 1.5% in choppy trading on Friday ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday and an EU ban on Russian crude on Monday.

They could fall further this week after OPEC+ agreed to stick to its oil output targets on Sunday but volatility is likely to continue after G7 countries and Australia also agreed a price cap on Russian oil.

Daniel Takieddine, CEO MENA at BDSwiss, noted OPEC’s policy could continue affecting production levels while COVID-19 restrictions in China, albeit easing, fuel demand uncertainties.