By: Mahmoud Gamal
Mubasher: Gulf stock markets are likely to extend their jittery-to-declining performance in April amid a state of anticipation as companies get ready to report their financial results for the first quarter of 2017 and as investors price in an extension to the oil freeze deal, according to analysts.
Investors are awaiting companies’ financial disclosures for Q1-17, which will be a major factor in determining market trend in the coming period, Raed Diab, head of investment research at KAMCO told Mubasher.
He added that the commitment to the deal, by the Organization of Petroleum Exporting Countries (OPEC), to trim production and its extension by both members and non-members may boost stock prices.
The new developments pertaining to listing the Saudi and Kuwaiti markets on the MSCI Emerging Markets Index is a catalyst for foreign investors to pump cash into these markets in the coming period, the analyst said.
In the first quarter of the year, GCC bourses suffered fluctuations, whereas the Kuwaiti market enjoyed significant gains, rising by almost 23%. Similarly, the Bahrain Bourse (BHB) gained close to 11%, whereas the remaining GCC bourses saw an overall negative performance during the three-month period.
Several bourses were affected by the decline in annual profits of blue chip companies, the analyst noted, adding that the decline in oil prices by around 9% in Q1-17 was a major reason for the fluctuations.
Translated by: Nada Adel Sobhi
