GCC markets likely to see gains after OPEC cut deal
Mubasher: GCC equity markets are forecast to witness strong gains on Thursday after OPEC reached an agreement to cut oil output for the first time since 2008.
By the time OPEC agreed to reduce output by about 1.2 million barrels a day by January, Brent crude future had risen by $4.02 or 8.9% to $49.25 per barrel and US West Texas Intermediate crude futures jumped 9% to $49.37 a barrel.
On this occasion, purchasing powers are likely to put an end to corrections started this week, said market analyst Mohand Oraykat, adding that liquidity is expected to improve by the fourth quarter with portfolios appetite for operational stocks ahead of the ever long-awaited dividend season.
Indicators revealed that traders have strong tendency for increasing provisions in small and mid-cap GCC stocks, namely the Saudi ones, said, market analyst Mohamed Al-Shammri.
However, regional markets are still in dire need for higher liquidity in order to shoot above important resistances, market analyst Nouaf Al-Ajmi concluded.
