By Mahmoud Gamal
Mubasher: GCC bourses will likely witness a jittery trading in the remaining sessions this week amid the absence of catalysts, due to oil prices re-testing $30 a barrel as well as the decline of global stock markets, said financial analysts.
On Monday, U.S. oil declined $1.2 to stand at $29.69 a barrel, while Brent, the global benchmark, fell $1.18 to reach $33.88 pb.
Along with the current instability of oil prices, U.S. and European stock markets ended Monday’s trading on a weaker note, while investor’s sentiment continued to be bearish with dawdling global growth.
A number of regional bourses were propelled yesterday by nationals’ tendency to purchase, ending the session in the green zone. Yet, blue-chip stocks of the banking sector dragged Abu Dhabi Securities Exchange to end the session in red.
“Regional bourses will be more exposed to a more volatile trend in the coming days. Real recovery will not be staged unless oil prices, which hamper investors’ activities, settle above $30 or $32 per barrel”, Mohanad Erikat, analyst, exclusively told Mubasher, adding that “GCC traders are currently affected out-and-out by global markets which have lost more than $8 trillion since the beginning of 2016”.
Translated by Ahmed El-Sayed Ali
