Kuwait-Mubasher: The continuing widespread speculations on a possible change in U.S. dollar interest rates have come to an end as the US Federal Reserve increased interest rates 0.25%, a technical analyst said.
Gulf and emerging markets were most affected by the decision comparing to other markets, as they failed to keep a lid on many technical levels that are critical. The oil prices will also show no resilience to the stronger dollar and may be knocked lower to 2004/2005 prices of $30 and $31, technical analyst Mohamed Sonbol added.
The lowest prices to which oil could plunge are $30 and $34, while they may stand back up to a maximum of $50 and $55 in the first half of 2016.
On a separate note regarding STC’s bid for Viva, Sonbol said that finalizing the deal would add more liquidity and send investors of Kuwait Stock Exchange (KSE) into a state of optimism.
Viva’s board will hold a meeting on Sunday to review the takeover offer proposed by Saudi Telecom (STC).
