By: Mahmoud Gamal
Mubasher: GCC stock markets are in need of new liquidity on Monday to be able to pass important resistance levels amid strong speculation and varying performance across global markets, analysts told Mubasher.
On Sunday, GCC bourses saw varying closings as the Saudi Stock Exchange (Tadawul) gained on the back of its petrochemical stocks following strong first quarter financials.
Since mid-March GCC markets have been seeing varying performance as liquidity exited the markets ahead of companies’ financial disclosures, commented analyst Al Sayed Hussein.
Tadawul is witnessing slight stability with resistance at 7,200 and support at 6,800 amid positive news that the Saudi King Salman has issued directives for a Cabinet reshuffle and the resumption of remunerations to the public sector, steps that will likely affect the retail sector and its spending.
The Saudi market has received strong support from speculation that it will be listed in the MSCI and FTSE Emerging Markets indices later in 2017 or in 2018 following the recent steps taken by the Saudi Capital Market Authority, the analyst told Mubasher.
As for the UAE’s bourses, Hussein noted that the Dubai Financial Market (DFM) was likely to see some stability in the coming period as economic indicators stabilise and with the emirate of Dubai not being strongly linked to oil price movements.
As for the Abu Dhabi market, the analyst said he expects a correction to take place as the index has been unable to pass 4,600 points for some time, noting that should the market pass this level, gains might still be trimmed due to the absence of positive catalysts.
Meanwhile, analyst Ahmed Aql told Mubasher that GCC bourses were testing important resistance levels and eyeing oil prices, amid fears of increased US reserves and how this rise might impact the deal to trim production undertaken by the Organization of Petroleum Exporting Countries (OPEC).
Translated by: Nada Adel Sobhi
