By: Mahmoud Gamal

Mubasher: Institutional and foreign traders tended to invest in mid- and small-cap stocks listed on the Saudi and UAE stock markets, pushing them to rise, analysts told Mubasher.

The GCC stock markets are expected to see a volatile performance on Tuesday, amid fluctuations in oil prices.

Foreign investors tended to make use of Saudi stocks after an official expected a potential inclusion of the Kingdom in the MSCI Emerging Markets (EM) Index, capital market analyst Nawaf Al Ajmi said.

MSCI will decide on Tuesday, 20 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 GCC stocks are expected to see a buying momentum, spurred by foreign institutional purchases, he added.

Possible stability of the Saudi market above 7,000 points may lead it to rise higher to 7,220-7,350 points, Al Ajmi noted.

The Dubai bourse managed to hold at 3,420 points, helping it reach its support at 3,480 points, the analyst noted.

The Abu Dhabi stock market will reach 4,480-4,450 points if it moves below 4,500 points, Al Ajmi said.

The markets’ sideways movement is normal in the coming period until major companies announce their first-half financials, Al Azmi said.

Translated by: Julian Nabil