By Mahmoud Gamal
Mubasher: GCC stock markets are expected to stage a temporary comeback this week despite the continued fluctuations in global oil and stock markets.
GCC markets dropped on Thursday to record levels, pressured by tumbling oil prices and concerns about global economies. Oil price reached their lowest since 2004.
Investors' concerns about China's economic slowdown eased relatively on government intervention in stock market and yuan, said Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI).
China stocks closed Friday in the positive territory.
Al-Taha indicated that the markets are seen rallying this week on selective buying transactions as the corporate reporting and dividend seasons approached.
He advised investors to think carefully before buying and monitor stocks whose companies are expected to post positive financials and pay attractive dividends.
Ibrahim Al-Failakawi, economist and technical analysis lecturer at the Advanced Studies & Training Centre, held the same view that the GCC bourses will likely rebound form their steep declines seen at the end of last week.
However, he said that this rebound is a good signal for professional speculators who are not impacted by external factors.
The regional markets are moving in a downtrend in the medium-term amid the ongoing political turmoil, low oil prices and volatility in global exchanges, Al-Failakawi said.
He forecasted investors to continue turning away from major stocks to avoid losses, noting that liquidity will see further decline next week.
Translated by Abdul Maguid Aboshahla
