By: Mahmoud Gamal
Mubasher: The majority of GCC bourses are forecast to resume their negative performance on Tuesday and most likely till the end of the week, analysts told Mubasher.
They added that the reasons for this outlook are investor anticipation for third quarter financial results and oil prices entering a correction after recent gains.
Several GCC bourses ended Monday at a slight rise, whereas the Saudi Stock Exchange (Tadawul) ended in the red, weighed by Saudi Fransi Bank’s (SFB) 1.3% drop.
Similarly, oil prices retreated by 2% at the closing of Monday’s trades, on the back of news that US oil rigs and output from the Organization of Petroleum Exporting Countries (OPEC) had increased.
Entering a correction phase, oil is likely to put pressure on several bourses till the end of this week, economic analyst Ibrahim Al Filkawy commented.
He noted that despite the recent upgrade to Boursa Kuwait by the FTSE Institution, the market was seeing declines as stocks had reached record highs prior to the upgrade.
Oman’s Muscat Securities Market (MSM) is the only bourse moving in a reverse trend, or a sideways-to-rising one, as compared to regional bourses, the analyst said, adding that liquidity was likely to remain low until the period for disclosing third quarter financials begins.
It is likely that investors will look to banking and petrochemical stocks in the coming period as Brent crude has reached a rebounding stage at $55 per barrel, Al Filkawy concluded.
Translated by: Nada Adel Sobhi