The region’s equity markets are set to trade within a range this week, though they will get support from higher crude oil prices and the US economy which is showing signs of gaining traction, say market experts.
“We don’t see a catalyst that will change the direction of the markets. There’s no news yet on companies’ [fourth quarter] performance. The markets will continue to see low volumes,” Mohammad Ali Yasin, Chief Investment Officer at CAPM Investment, told Gulf News.
“We are not expecting any surprise movements unless something from Europe pushes the markets in the negative direction,” he added. Jaap Meijer, Senior Analyst at HC Securities in Dubai, told Gulf News the equity markets in the Gulf Cooperation Council (GCC) are expected to do reasonably well in 2012, even if oil prices fall a bit.
“It might be a tough year but, as long as the oil prices remain above $65 a barrel, we won’t see any major spending cuts by the governments in the GCC. These markets are much more resilient than Europe and we might see a higher growth in the banking system across the GCC,” said Meijer.
Yesterday, Saudi Arabian shares gained, led by banks, as manufacturing reports bolstered global economic optimism before the release of earnings in the Arab world’s big gest economy.
On Thursday, the Dubai Financial Market (DFM) index rose 0.16 percent to close at 1,348.80. In contrast, the Abu Dhabi Securities Exchange general index fell 0.74 percent to close at 2,398.76.
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