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GCC markets likely to drift lower on oil fall – Analysts

GCC markets likely to drift lower on oil fall – Analysts
foreign investors have been showing interests in Egypt's blue-chip and mid-cap stocks - Photo Credit: Reuters

By Mahmoud Gamal

Mubasher: GCC stock markets are forecasted to see a broader selling wave on Thursday as oil prices are placed below $50 per barrel ahead of the US Fed's meeting, analysts told Mubasher.

After oil prices neared $47 a barrel, investors likely start feeling deeper concerns over the trading activity, which will probably lead to liquidation, said market analyst Salem Al-Newyeiry.

The US Fed's meeting tomorrow also puts greater pressure on GCC stocks to an extent that may prompt investors to sell off their shares, Al-Newyeiry added, clarifying that foreign traders have started to limit position-building on stocks that have already ticked significant higher quotes and started to see a slide.

In addition, GCC markets are under a massive pressure of economic slowdown that is seen prompting regional governments, which suffer from budget deficit, to adopt more austerity measures, said market analyst Maytham Al Shakhs.

Al Shakhs noted that foreign investors have been showing interests in Egypt's blue-chip and mid-cap stocks.

On Wednesday, Brent crude futures and US West Texas Intermediate (WTI) crude declined to $49.05 and $46.77 per barrel, respectively.