By: Mahmoud Gamal

Dubai - Mubasher: The GCC stock markets are expected to recover and resume the bull run on Tuesday on the back of anticipated positive quarterly financial results amid the escalating US-China trade war, analysts told Mubasher.

Most of the GCC markets closed Monday’s trading session in red, except for the Bahrain Bourse which closed the session in green.

Positive results

The GCC bourses, particularly the Saudi Stock Exchange (Tadawul), are likely to be affected by the escalating trade war between China and the US in the coming sessions, financial advisor Mohammed Al- Shammari told Mubasher.

The US-China trade war will barely impact most major economic sectors in the GCC, Al- Shammari said.

He noted that the anticipated positive financial results for the third quarter of 2018, especially Tadawul-listed firms, will be a key factor in eliminating of the negative impacts of the Sino-US trade war.

Many investors are postponing buying stocks in the GCC markets until companies start announcements of financial results by the end of the first nine months of this year, the financial advisor pointed out.

The Saudi market is likely to see a downward trend following the two-day holiday in celebration of the Saudi National Day, he said.

Tadawul

For his part, the economist Mohamed Al-Maimouni said that the Saudi market will technically begin to move upwardly in the medium term.

He highlighted that Tadawul will change the downward movement over the coming trading sessions if its benchmark Tadawul All Share Index (TASI) breaks 7,800 points.

The Saudi market may rebound slightly on Tuesday, Al-Maimouni projected, adding that TASI will not be able to surpass 8,700 points amid investors’ anticipation to Q3-18 results.

Oil firms are expected to see positive quarterly results on the back of the recent hike in oil prices, he noted, adding that banks’ stocks will also witness a remarkable performance in light of the increasing interest on deposits.

Translated by: Mai Ezz El-Din