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GCC traders to remain cautious after geopolitical events – Analysts

GCC traders to remain cautious after geopolitical events – Analysts
(Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal

Mubasher: Caution is likely to be a dominant feature across GCC bourses on Sunday, following mixed performance in global markets after the US' airstrikes on Syria, analysts told Mubasher.

Early Friday, the US targeted a Syrian airbase in response to a recent chemical attack in Syria as well.

Market analyst Ines Mguidich commented that she expects the geopolitical events in Syria to weigh on GCC bourses, noting that investors were likely to remain cautious in the coming period ahead of companies’ first-quarter disclosures.

This comes despite last week’s gains, she told Mubasher, highlighting that GCC bourses are entering a “narrow” or “weak” trading phase.

Meanwhile, market analyst Ahmed Aql expects Friday’s geopolitical events to play a role but internal events, such as the upcoming disclosures of first-quarter financials, to have a bigger impact on GCC markets.

He expects blue chips, particularly those in the petrochemicals sector, to see significant buying by portfolios, noting the recent oil price increases compared to last year.

Aql advised GCC market traders to keep “an investment eye” on the markets, while focusing on the various support levels for each market, as well as companies with high earnings per shares.

On the other hand, market analyst Mohamed Al Anzy advised minor traders “not to rush” and keep an eye on global markets as expectations rise that these markets will begin profit-taking soon, according to a statement to Mubasher.

Last week, the Saudi Stock Exchange (Tadawul) and the Bahrain Bourse (BHB) ended Thursday in the green, rising 0.35% and 0.21% to 7,075.57 points and 1,353.36 points, respectively.

On the other hand, the Dubai and Abu Dhabi bourses ended the session down 0.19% and 0.55% to 3,566.35 points and 4,615.23 points, respectively. Similarly, Kuwait, Qatar, and Oman ended Thursday in the red.

 

Translated by: Nada Adel Sobhi