Mubasher: GCC and Egypt equity markets are likely to maintain the positive performance in the remaining sessions of this week, propelled by leading companies’ solid statements and dividends and most importantly by the present stability of oil prices and global stock markets, analysts expected.
Yesterday, most bourses of the region finished the day in the green zone, namely the Saudi Stock Exchange that closed higher 2.4% after the ceiling on the loan-to-deposit ratio was turned from 85% to 90%.
Brent oil price jumped 2% to $33.39. Likewise, NYMEX crude added 58 cents to stand at $30.02.
European indices also stayed in the green territory for the second session in a row, powered by the recovery of banking stocks and French telecommunications, while US stock markets were closed for a public holiday.
However, “GCC markets will not be eased unless oil prices settle above $34 after Feb-16 meeting of world top oil producers and OPEC.” Sultan Ahbab, analyst, speculated.
In spite of the positive performance, investors still wonder whether stock markets are truly relieved, said Wadah Al-Taha, a chartered member of the chartered Institute for Securities & Investment in UAE, adding that “they are therefore advised to adopt quick speculation on blue-chip stocks”.
