By: Mahmoud Gamal
Mubasher: Technical analysts expected that gulf stock markets will continue in their upward performance on Tuesday, after oil prices reached their highest levels in five weeks.
The Dubai Financial Market (DFM), Qatari Stock Exchange (QSE) and Egyptian Exchange (EGX) reached their highest levels in months on Monday, while the Saudi Stock Exchange (Tadawul) retreated, on the back of the banks sector.
Oil prices levelled up at the end of Monday's session, with Brent crude futures increasing 2.9% to $48.35 per barrel (pb) to mark the highest level since 12 July.
US West Texas Intermediate (WTI) crude futures moved up 2.8% to $45.74 pb, its highest level since 21 July.
Oil gains will have a positive impact on gulf stock markets and will motivate the investors to buy shares, especially blue chips, said technical analyst Ibrahim Al Filkawy.
In the UAE, Emaar Properties rose 1.4% to AED 7.44 and the National Bank of Abu Dhabi (NBAD) and Union National Bank (UNB) increased 1.2% each.
In the Qatari bourse, Masraf Al Rayan and Ooredoo went up 1.5% and 2.5%, respectively.
In the EGX, the Commercial International Bank (CIB) advanced 3.2%.
European indices reached their highest levels in seven weeks backed by the rise of healthcare companies, while the US indices recorded their highest levels ever supported by the energy companies.The positive atmosphere in global bourses will encourage the gulf markets to ignore the negativity of the financial results of some mega companies like Drake and Scull, which announced losses yesterday.
Mohamed Al Zawy, technical analyst, expected that gulf bourses will witness a positive rebound till the end of the week.
He added that Tadawul, the biggest market in the region in terms of the market capitalisation, is moving forward to reach 6,409 points then to 6,464 points.
The Kuwait Stock Exchange (KSE) is facing more fluctuation and its target is to reach 5,510 points, while QSE is likely to reach 11,250 points.
UAE indices will see a kind of stability with the rise likely to continue on the medium term, Al Zawy added, noting that the DFM and ADX target reaching 3,620 points 4,580 points, respectively.
As for market closings on Monday, Tadawul’s main index shed 0.3% to 6,358 points, while the DFMGI rose 1% to 3,602 points and the ADX index increased 0.7% to 4,560 points.
The EGX30 index levelled up 1.2% to 8,454 points, while the QSE’s general index advanced 0.7% to 1,1128 points.
On the other hand, the general indices of KSE, Muscat and Bahrain shed 0.1% each to 5,492 points, 5,907 points and 1,159 points, respectively.
Translated by: Sara Ghali
