By: Mahmoud Gamal
Mubasher: The GCC stock markets are likely to be gripped by five factors this week, analysts told Mubasher.
It is worth noting that most of the region’s bourses closed Sunday’s trading session in the red.
OPEC’s decision
The GCC bourses are currently moving downwardly despite the recent decision made by the Organization of the Petroleum Exporting Countries (OPEC), economist Ibrahim Al-Failakawi told Mubasher.
On Friday, the cartel along with Russia and its allies decided to cut oil production by 0.8 million barrels per day (bpd) and raise its prices by 2%.
Oil prices are expected to negatively impact the markets, mainly the Saudi Stock Exchange (Tadawul), whether it remains high or falls below $60, Al-Failakawi said.
Investors in the GCC markets are currently anticipating the results and any geopolitical developments of the GCC Summit 2018 being held in Riyadh, especially after the attendance of Qatar, he highlighted.
He added that the real estate sector is facing a temporary recession, which is dragging down the UAE bourses.
As for Boursa Kuwait, he indicated that the second phase of upgrading the market by FTSE Russell will set its trend.
The economist also pointed out that the Bahrain Bourse mirrors Tadawul’s performance.
TASI
For his part, the economist Mohamed Al-Maimouni said that the Tadawul All-Share Index (TASI) failed to break 7,910 points after testing 7,500 and 7,450 points.
TASI is moving sideways and hovering around 7,760 points, and is likely to carry on that performance over the coming period, Al-Maimouni pointed out.
US stocks
The GCC stock markets are likely to be affected by the US stocks which seen sharp declines last Friday, technical analyst Gamal Abdul Hamid told Mubasher.
He projected traders in the US stock market to exit from investing in digital currencies, such as bitcoin, to direct their investments to the GCC markets, particularly the UAE bourses.
Translated by: Mai Ezz El-Din
