By: Mahmoud Gamal

Mubasher: Analysts expect GCC bourses to continue their rise on Tuesday, coinciding with a recovery in oil prices, amid news of a possible output cut announcement next week.

Brent crude jumped 3% or $1.44 by the end of Monday, closing at $48.30 per barrel, while Western Texas Intermediate (WTI) oil futures increased to $47.7 pb.

Analyst Ibrahim Al Filkawy commented that the rise in oil prices will boost GCC stock markets, which will see a horizontal upside performance on Tuesday.

Most GCC markets were unaffected by the Saudi Stock Exchange's decline for the third successive session in which investors were focused on selling for profit-taking, he noted.

The performance of GCC stocks and bourses is tied to the upcoming meeting for the Organisation of Petroleum Exporting Countries (OPEC), which is likely to result in a decision to trim output, the analyst told Mubasher.

In the event of a production cut, GCC bourses will attract liquidity, he added.

GCC stocks, particularly cheaper ones will remain attractive especially for foreign investors, after retreating to low price levels, market analyst Abdullah Al-Ali told Mubasher.

The majority of GCC indices are stable above strong support levels, enabling them to extend their rise amid strong market-boosting catalysts such as the approach of the OPEC meeting and output deal, commented Masaken Capital's Mohannad Orayqat.

Translated by: Nada Adel Sobhi