5 factors to boost GCC stocks - Analysts

5 factors to boost GCC stocks - Analysts
The GCC stock markets are likely to maintain the bull run over the coming trading sessions

By: Mahmoud Gamal

Mubasher: The GCC stock markets are likely to maintain the bull run over the coming trading sessions on the back of five factors, analysts told Mubasher.

These factors include expectations that the US-China trade war would end soon, coupled with improved oil prices, they added.

Most of the bourses the Gulf region closed Monday’s trading session in green territory, mainly the Saudi Stock Exchange (Tadawul) which snapped a five-session winning streak.


Government incentives

The GCC bourses are currently performing positively, anticipating further gains, particularly the UAE’s twin bourses, managing director of asset management at MENACORP Tariq Qaqish told Mubasher.

The UAE government has launched a number of initiatives to encourage entrepreneurs and support private sector companies, which will positively impact the country’s stock markets, Qaqish indicated.

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FTSE Russell

For his part, economist Mohamed Al-Maimouni said that the GCC bourses are ready to see further gains ahead of Tadawul’s upgrade on the FTSE Russell emerging markets index.

Tadawul, the largest stock market in the Gulf region, is expected to see investments worth $20 billion this year and to become the Middle East’s biggest bourse listed on the FTSE Russell EM index with a total weight of 2.7%, Al-Maimouni projected. 

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Positive performance

Moreover, economist Ibrahim Al-Failakawi said that the GCC stock markets are likely to maintain the positive performance in the coming period as the US-China trade war could reach an end soon.

Al-Failakawi highlighted that the GCC bourses have been seeing an upward trend since the beginning of 2019 on the back of listed-companies’ robust annual financial results and cash dividend payments which pushed foreign investors to boost purchasing positions in the markets, especially in the Dubai Financial Market (DFM).

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Oil prices

Global oil prices have revived recently and settled above $60 per barrel (pb), which will boost investors’ confidence in the markets, mainly in the UAE, CEO of Mindcraft Consulting Fady El Ghattis told Mubasher.

El Ghattis added that the UAE government has recently announced a number of decrees regarding residential loans support and residency visa.

The GCC bourses are currently hitting attractive levels and low price/earnings ratio, he indicated.


Translated by: Mai Ezz El-Din