By: Mahmoud Gamal
Low-priced Gulf stocks attract portfolio investors Mubasher: Most Gulf stock markets are expected to continue their slight gains on Wednesday, amid tendency of portfolio investors to increase their positions in blue chips despite lower oil prices and volatile global stocks.
After small caps reached their speculative targets on Tuesday, portfolio investors are expected to buy mid-caps and blue-chips which reached technically attractive price levels, especially amid stability of oil prices above the $50/ barrel level, Adnan Al-Dulaimi, GM of Mena Financial and Economic Consultation, told Mubasher.
The negative performance of Saudi bourse, as a result of economy restructuring plans implemented by the Kingdom these days, are negatively affecting the sentiment of Gulf investors, according to Badr Fawaz, an investment director of a fund in one of the stock markets.
Improvement in Gulf stocks in the recent period are mainly driven by the recovery of oil prices, Fawaz noted.
Foreign investors are building positions in major Gulf stocks, especially with the approach of the third-quarter financial announcements, according to economic analysts Mohammed Al-Anzi.
Translated by: Julian Nabil
