By: Mahmoud Gamal

Mubasher: The GCC stock markets are expected to suffer further losses on Monday, amid anticipation of the performance of oil prices, which fell to their lowest level since the beginning of this year, analysts told Mubasher.

Investors’ anxiety increased over Brent crude oil prices which settled on Friday at $47.37 per barrel (pb) - the level which could threaten the stability of GCC economies if it continued, capital market analyst Khaled Al Muzaini said.

Merrill Lynch mentioned in its weekly report that the stability of oil prices above $50 pb will support the countries’ economic reforms, while their decline below $40 pb is likely to threaten the overall economic stability, Al Muzaini added.

The markets are seeing speculations to make up for the losses of portfolios, he said, adding that the bourses did not see any new liquidity two months ago.

The Saudi bourse is still supported by the potential inclusion of the Kingdom in the MSCI Emerging Markets (EM) Index, market analyst Hassan Al Zawi told Mubasher.

MSCI will decide on Tuesday, 19 June, whether to include Saudi Arabia on its watchlist for potential reclassification as an emerging market, to be followed by an upgrade in mid-2018 with implementation by mid-2019.

The markets are expected to continue their fluctuations until the announcement of first-half financial results, capital market analyst Mohamed Al Azmi added.

Translated by: Julian Nabil