By Mahmoud Gamal

Mubasher: GCC indices are likely to have jittery movements today affected by future rising of interest rates and volatile oil prices, but tending, however, to end the last trading session this week higher.

Uncertainty over China’s economy and financial market instability pose risks to U.S economic growth, yet economic development is unlikely to happen as long as the central bank keeps the cycle of interest rate increase, said Fderal Reserve Chairwoman, Janet L. Yellen, in the first congressional testimony since the first increase of U.S interest rate last December.

Most GCC stock markets closed on a lower note yesterday, but the Egyptian Stock Exchange was powered by foreign investors’ purchases to conclude the session stronger.  

In addition, Brent stood at $30.84 per barrel yesterday adding 52 cents, while U.S crude prices fell to 27.45, losing 49 cents.

Janet’s testimony will probably keep the volatile performance of GCC bourses and oil prices, pushing investors to take temporary precautions and speculators to build more positions in low-priced shares, Abdullah Al-Jabaly, analyst, exclusively told Mubasher.

On the other hand, Mohamed Al-Shamimri, analyst, expected that “most GCC bourses may turn profitable on Thursday, namely the Saudi stock market that still targets the tranche of 6000 points”, adding that “most financial markets’ indicators gave positive signs to speculators once again”.  

In general, investors should linger in making decisions, until the foggy outlook of global markets and oil prices fade away, Hamoud Al-Azmi recommends. 

Translated by Ahmed El-Sayed Ali