UAE-Mubasher: Some GCC stock markets have rebounded last month, as they were buoyed by the recovery of global oil prices, showed a report issued by research firm Capital Economist.

However, it noted that investor hopes for strong rallies in equities in the short term may not come true.

The Gulf stock markets have restored their uptrend once again following turbulences seen in the second half of the year 2014 due to the oil slump. This recovery was mainly driven by the rebound in crude prices, as Brent crude rose from $45 per barrel at 2014-end to current $60 per barrel, according to the report.

The Saudi stock market Tadawul was the best performer last month, as it rose by 10% helped by oil rise, in addition to smooth succession and transfer of power in Saudi Arabia to King Salman.

In Egypt, there are mounting concerns about widening inflation following the steep fall of the local currency that slide in January, Capital Economist explained.

Egypt’s pound fell by 6% against the U.S. dollar early this year, as it was allowed to depreciate to restore competitive capabilities and reduce pressures on the currency in the black market.

According to the report, Egypt’s equities slipped in January, but a further slide is unlikely.

Translated by Sayed Abdel Rahman

Photo Credit: Arabianeye-Reuters