By Mahmoud Gamal
Mubasher: Bahrain Bourse ended January in the red zone, dragged by low oil prices and neighboring stock markets’ extreme losses.
By the end of January, the bourse dropped 2.4% or 29 points to 1,187.10 points, from 1,215.89 points in December 2015.
Commercial bank, investment, and industrial sectors all pushed Bahrain’s financial market down, as they were battered by the downtrend of Ahli United Bank, GFH Financial Group and Alba.
The market liquidity fell to BHD3.9 million ($10.3 million), from BHD7.15 million ($18.8 million).
Moreover, trading volume dipped to 23.43 million shares from 39.44 million.
This downturn is mainly attributed to strong fluctuations of GCC and global stock markets due to falling oil prices, said Mohamed Sonbol, analyst, adding that, however, it can be reversed to a sideways movement by any positive performance of the regional and global bourses.
Accordingly, traders should adopt speculation techniques, investing one-quarter of their funds, Sonbol recommended.
In case purchasing powers do not emerge on blue-chip stocks, the main index will likely drop to next support levels of 1,050 points, then 1,000 correspondingly, he also stated.
Translated by Ahmed El-sayed Ali
