By: Mahmoud Gamal
Mubasher: Gulf stock markets should be able to hold well this week if oil prices recover and remain above $50 per barrel (pb), analysts told Mubasher on Sunday.
On Thursday, GCC bourses ended mixed, with the Saudi Stock Exchange (Tadawul) closing in the red amid falling oil prices.
On Friday, oil prices closed up, as Brent crude grew 38 cents or 0.81% a barrel to $47.30 pb, while US crude increased 24 cents or $0.54% to end at $44.70 pb.
Regional bourses will remain jittery and are likely to see a recovery when oil prices stabilise above $50 pb, a level that has become a psychological one for traders, according to analyst Ibrahim Al Filkawy.
GCC market traders have become increasingly affected by global news, particularly those of the US Federal Reserve, which raised interest rate prices last week and which in turn may affect real estate stocks with high debts owed to banks, Al Filkawy told Mubasher.
On the other hand, capital market analyst Abdullah Al Jabali told Mubasher that raising or trimming interest rates will not have a major impact on markets, indicating that the main driver in the coming period will be oil which constitutes a major aspect in GCC markets’ budgets.
Translated by: Nada Adel Sobhi
