GCC bourses likely to see cautious trades ahead of Yellen testimony - Analysts

GCC bourses likely to see cautious trades ahead of Yellen testimony - Analysts
Traders at Dubai's bourse

By: Mahmoud Gamal

Mubasher: The GCC stock markets are likely to continue their sideways-to-bullish performance, amid investors’ anxiety over US economist Janet Yellen's semi-annual testimony to Congress this Wednesday, analysts told Mubasher.

Most GCC bourses witnessed a positive performance on Tuesday, backed by purchases of banks stocks by foreign and institutional investors.

Yellen will deliver on Wednesday and Thursday a testimony before Congress on monetary policy, and projected interest rate hikes.

Most Gulf currencies are pegged to the US dollar and any monetary policy change in the US is usually mimicked by Saudi Arabia, the UAE, and other neighbouring countries, financial expert Mohammed Al Shammari said.

Volatility of global stocks will push investors to be more cautious, leading speculators to increase their positions in low-priced stocks, Al Shammari added.

The markets are seeing cautious trading as investors are awaiting second-quarter financial disclosures, financial analyst Ahmed Akl said.

The Gulf indices are expected to test real resistances on Wednesday and Thursday, Akl noted. 

Translated by: Julian Nabil

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Source: Mubasher Exclusive

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