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GCC markets likely to drift higher on stronger oil – Analysts

GCC markets likely to drift higher on stronger oil – Analysts
"GCC stock profits exceeded all expectations" - Photo Credit: Reuters

By Mahmoud Gamal

Mubasher: Stronger oil prices near $48 per barrel are forecast to stimulate GCC traders in the mid-week trading session to build new positions on small and mid-cap stocks.

On Monday, Brent crude futures added $1.46, or 3.2%, to level up at $47.35 per barrel

Market analyst Fouad Darwish said foreign appetites for GCC stocks are likely to continue on Tuesday, namely the stocks that have reached attractive levels and have a solid financial solvency ahead of the disclosure of Q3 financials.

"GCC stock profits exceeded all expectations set by most portfolios over the past two sessions this week ", Darwish told Mubasher, assuring that more gains are to be achieved if oil's firm performance continues and the presently Algeria-held OPEC meeting ends positively.

In spite of this noticed improvement, GCC markets could be still pressured by portfolios' attempt to buy on the dips, said economic analyst Mohamed Al-'Azmi.

The upward trend will be confirmed after the outcome of OPEC meeting and Q3 financials are revealed, Al-'Azmi concluded.