By: Mahmoud Gamal
Mubasher: Investors of the GCC stock markets are expected to continue their speculations on the small and medium stocks, especially the insurance sector’s stocks, after they reached attractive levels, analysts told Mubasher.
On Tuesday, the GCC bourses saw mixed performance which led the Saudi Stock Exchange (Tadawul) to remain stable, whereas the Qatar Stock Exchange (QSE) was the worst performer after drop in leading firms’ stocks.
Analysts forecasted that the GCC stock markets are expected to continue their sideways-to-rising performance during Wednesday trading session, and some foreign portfolios will reinvest in the stocks that reached attractive levels.
Investors are focusing on the medium and small stocks in the GCC bourses, after leading stocks saw profit taking which led the indices to tumble, technical analyst Ibrahim Al Filkawy told Mubasher.
On Tuesday, in Tadawul Malath Cooperative Insurance Company’s stock surged 9.9%, and MetLife AIG ANB Cooperative Insurance Company’s stock increased 3.6%.
In the UAE, Al Khazna Insurance Company’s (AKIC) stock levelled up 7%, and the stock of Dubai Islamic Insurance & Reinsurance Company (AMAN) rose 1.6%.
Most of the GCC bourses’ indices saw rising trend after exceeding their support levels on the medium-term, after Brent Crude Oil price reached above $55 per barrel (pb), Al Filkawy added.
On Tuesday, Brent Crude Oil reached $58.3 pb, and the US Oil edged up 0.4%, reaching $52.09 pb.
Al Filkawy confirmed that oil remaining above $55 pb encouraged investors to reinvest in the some portfolios, and it is forecasted that the bourses’ indices will see positive performance in the coming period.
Companies’ financial results
The financial results that will be announced later will be the main catalysts to boost the indices during the coming sessions, Raed Diab, Vice President of Investment Research Department in KAMCO, told Mubasher.
The fluctuation that occurred in the GCC stock markets is attributed to speculations on small stocks, in addition to trading on leading stocks, especially the banking sector ones, after announcing results, Diab concluded.
Translated by: Mohamed Hesham Azab