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GCC bourses to see further gains this week – Analysis

GCC bourses to see further gains this week – Analysis
GCC markets are expected to maintain the bullish trend over the coming sessions

By: Mahmoud Gamal

Mubasher: The GCC stock markets are likely to see further gains over the coming trading session on the back of 10 key factors including the regional and global geopolitical tensions, analysts told Mubasher.

By the end of Monday’s trading session, the Saudi Stock Exchange (Tadawul) jumped by 1.8%, and the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) closed yesterday’s session in green backed by rising blue-chip stocks.

Image result for saudi financial market

Geopolitical tensions

The GCC bourses are expected to see further gains in June as the regional geopolitical tensions have calmed down, economist Mohamed Al-Maimouni told Mubasher.

Oil prices are likely to rise, which will directly impact the petrochemical stocks, Al-Maimouni indicated.

Moreover, foreign funds have shown interest in the recently included blue-chip stocks to the MSCI Emerging Markets Index, which will be positively reflected in the markets, he added.

He pointed out that the geopolitical and economic conditions affect the markets, particularly the US-China trade war.

Following the Eid Al Fitr holiday, traders will be cautious when monitoring the markets, he said.

Image result for Abu Dhabi Financial Market

Confidence in markets

For his part, Fadi Elghattis, founder of Mindcraft Consultants, said that investors should restore their confidence in the GCC markets as global markets saw a positive performance during the Eid Al Fitr holiday.

Stock markets in the region are expected to maintain the bullish trend over the coming sessions, mainly in the UAE and Saudi Arabia, as the US is likely to cut federal funds rate, Elghattis projected.

Accordingly, the GCC-listed real estate and services stocks are projected to hit attractive levels and see additional liquidity, he highlighted.

He also indicated that investors will re-pump liquidity in the markets after closing their financial positions before the Eid holiday.

Image result for Kuwait Financial Market

Major stocks

For his part, economist Ibrahim Al-Failakawi projected the GCC stock markets to see a positive performance this week on the back of the banks, petrochemical, telecommunications stocks after the upgrade of Tadawul on the MSCI Emerging Markets.

The Gulf markets will tend to make up for its losses this week by persuading investors with the available opportunities, Al-Failakawi stressed.

Foreign investors, mainly in Tadawul and Boursa Kuwait, are likely to accelerate purchasing transactions and forming new investment positions that boost the indices, he expected.


Translated by: Mai Ezz El-Din