By: Mahmoud Gamal

Mubasher: Caution will continue to be the dominant theme across GCC stock markets this week, after global markets fell last week on the back of a US-led airstrike on Afghanistan, as well as the ongoing tension between the US and North Korea, analysts told Mubasher.

GCC bourses ended on a mixed note last week, with the Dubai Financial Market (DFM) and Qatar Stock Exchange (QSE) declining, while the Saudi Stock Exchange (Tadawul) recorded marginal gains on a weekly basis.

Investors were "cautious" last week and are likely to remain so this week amid the geopolitical tensions between the US and North Korea on one hand, and the US’ intervention in Syria on the other, commented market analyst Ines Mguidich.

Moreover, the disclosure period for companies’ first-quarter financials has begun; therefore, it is expected that geopolitical developments will continue to impact investor sentiment this week.

From a technical perspective, GCC bourses have entered a "narrow channel," she added.

Meanwhile, analyst Ahmed Aql told Mubasher that he expects GCC-listed blue chips, particularly those in the petrochemical sector, to see significant buying by some portfolios, as these companies are expected to see positive results on the back of increased oil prices compared to last year.

Aql advised traders to "have an eye for investment" and focus on the different support levels for each market as well as on stocks with high earnings per share.

Last week, Tadawul ended the week up 0.3% to 7,077 points, while the DFM and the Abu Dhabi Securities Exchange (ADX) closed down 0.9% and 0.8% to 3,509 and 4,518 points, respectively.

Boursa Kuwait and QSE benchmarks also fell 0.5% and 0.4% to 7,008 and 10,451 points, respectively.

The Bahrain Bourse (BHB) slipped 0.1% to 1,356 points, whereas the Muscat Securities Market (MSM) increased 0.3% to 5,572 points.

Translated by: Nada Adel Sobhi