By: Mahmoud Gamal
Mubasher: The continued rise in the global markets, particularly US ones which have reached record highs are likely to prompt investors to increase their positions in GCC stock markets on Wednesday, analysts told Mubasher.
Several global bourses were in the green late Tuesday, with the Dow Jones Industrial Average (DJIA), adding 0.35% and rising to an all-time high of 19,023.89 points. Meanwhile the Eurofirst 300 and Stoxx Europe 600 indices each grew 0.2%.
Some GCC bourses benefited from the 3% gain in oil prices on Tuesday, with Saudi Arabia's TASI jumping 1.6% to 6,602 points, and Oman's Muscat Securities Market (MSM) adding 0.5% to 5,521 points.
Market analyst Mohamed Al-Azmi told Mubasher that he expected local and institution-led purchasing to continue in GCC stock markets where many shares have reached attractive buying levels, particularly those with a good financial solvency ahead of the announcement of dividend distributions.
The rise in oil prices, which are nearing the $50 per barrel mark, is among the reasons of renewed confidence in some GCC markets, he noted.
In his comment to Mubasher, Al-Azmi added that investors are looking to the upcoming meeting of the Organisation of Petroleum Exporting Countries (OPEC) which they expect will positively impact GCC stock markets.
On the other hand, market analyst Nawwaf Al-Ajamy advised traders to avoid entering the markets at present until a rising trend is confirmed, backed by strong market-boosting catalysts.
GCC markets have witnessed a significant rise in trading in the past session, they added.
Translated by: Nada Adel Sobhi
