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GCC bourses likely to move sideways ahead of OPEC meeting

GCC bourses likely to move sideways ahead of OPEC meeting
Traders at Boursa Kuwait (Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal 

Mubasher: The GCC bourses are expected to continue their sideways performance on Wednesday, as investors are waiting for the trend of oil prices following the meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC partners, analysts told Mubasher.

The meeting will be held on Thursday to discuss the prolongation of the output reduction deal for another six months, analysts noted.

The bourses were dragged down on Tuesday by profit-taking before the beginning of the holy month of Ramadan, during which trading volume and liquidity usually decline.

Oil prices are seen at important resistance levels, which will lead to fluctuations in the GCC bourses on Wednesday and Thursday, financial analyst Ahmed Akl said.

Llast November, OPEC and non-OPEC partners agreed to cut output by almost 1.8 million barrels per day (bpd).

Traders are expected to pump their investments into stocks with good operational performance, Akl confirmed.

Low liquidity should push small investors to be cautious, capital market analyst Hamoud Al Shammari told Mubasher.

Translated by: Julian Nabil