Mubasher: GCC traders are forecast to keep hedging against the mixed performance of regional equity markets on Wednesday, analysts told Mubasher, expecting investment portfolios to liquidate their assets after MSCI stock reviews.
Caution is still reigning regional stock markets, namely after the unexpected result of the US election, said financial analysts Ahmed Aql and Adnan Al-Delmi.
Accordingly, GCC stocks are likely to face more pressure in the coming period thanks to speculations about a hike in US key policy rates, Aql indicated.
GCC traders, led by foreigners, have started to sell off their stocks due to this foggy outlook as well as MSCI review or cancellation of some regional stocks, Al-Delmi highlighted.
Moreover, oil prices, which stand below $45 a barrel, represent one of the drivers behind the present selling tendency, Aql added,
FY16 annual financial disclosures may be the only trading catalyst for changing or building investment positions on the upcoming run, Aql concluded.
