By: Mahmoud Gamal
Mubasher: The Gulf stocks markets and Egyptian exchange are expected to see a positive performance on speculative activity on Tuesday, in line with the recovery of oil prices and volatility of global bourses.
Brent crude went up 1.4% to reach $50.89 per barrel. In addition, U.S. West Texas Intermediate (WTI) crude also advanced 1.2% to stand at $48.81 per barrel.
Higher oil prices will push the Gulf markets to exhibit a sideways-to-bullish trend, technical analyst Ibrahim Al-Failakawi told Mubasher.
Gulf bourses were weighed down by the fall of Saudi Stock Exchange (Tadawul) on the back of plans for reforms to the telecommunications industry, as well as the austerity measures taken by the Kingdom last week, the analyst added.
Gulf markets will be significantly affected by the performance of global stocks which saw fluctuations after Britain's Prime Minister Theresa May said that Britain would trigger Brexit talks by the end of next March.
Gulf stocks, especially the cheap ones, reached attractive price levels, capital market analyst Abdullah Al Ali said, adding that investors are still anxious over external factors.
The sentiment of global investors were affected by the issue of Deutsche Bank which is asked by the U.S. Department of Justice to pay $14 billion to settle an investigation into its mis-selling of mortgage-backed securities.
Some of foreign and gulf portfolio investors tended to build new positions in gulf stocks, according to capital market analyst Amir Mansour.
Translated by: Julian Nabil
