By Mahmoud Gamal
Mubasher: GCC equity markets are likely to witness a broader selling wave on Thursday as oil prices are still sliding below $45 per barrel, analysts told Mubasher.
After oil prices neared $40 a barrel yesterday, investors' sentiment may grow in favor of sell-offs and liquidation in spite of the US Fed's decision to hold interest rates, which is seen a positive indicator for GCC stocks, said capital market analyst Basel Abo Teima.
Further, foreigners' appetite for GCC stocks, which reached attractive pricing levels, have started to decrease due to more external pressures, most importantly including falling global markets and oil prices, Abo Teima added.
On Wednesday, both Brent crude futures and US West Texas Intermediate (WTI) crude futures declined to $43.47 and $41.92 per barrel respectively.
Along with oil pressures, weaker Q2 financial results might also have a negative impact on GCC equities today, capital market analysts Maitham Al-Shakhs and Hamoud Al Azmi stated.
Investors are advised to take their investment decisions watchfully as regional markets are seen giving a volatile performance amid global markets' mixed movements, Al Azmi concluded.
Translated by Ahmed Elsayed Ali
