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Profit-taking on GCC bourses likely to continue – analysts

Profit-taking on GCC bourses likely to continue – analysts
a rate hike would be possible in September - Photo Credit: Reuters

By Mahmoud Gamal

Mubasher: GCC equity markets' traders are likely to keep decreasing positions as well as suffering a loss of buying appetite on Tuesday amid lack of positive data, according to analysts.

Portfolio and fund managers are forecast to lead a profit-taking trend during the mid-week trading session, said capital market analyst Mahmoud Abo-Zaid.

"Such trend is regarded as a 'pre-emptive' measure before their losses grow deeper due to negative data over the US interest rate and oil", the analyst explained.

Economic analyst Fouad Darwish expected GCC bourses to move downwardly all over the remaining sessions this week, negatively affected by world markets' jittery performance after statements alluding to the rise of interest rates and US dollar as well.

In order to either maintain or shoot above the current levels, GCC stock markets are in dire need to real momentums that may raise liquidity levels and encourage investor's buying appetite, Darwish added.

At the end of last week, New York Fed President William Dudley stated that a rate hike would be possible in September.