Gulf shares may follow global markets higher; Egypt technically bearish
Upbeat global shares and steady crude oil prices may provide support to Gulf stock markets on Thursday, while Egypt’s main index may face further downside after breaking technical support.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 percent to its highest since July 2015, underpinned by an ongoing rally on Wall Street. Brent futures barely moved from their previous settlement, trading at $55.73 a barrel at 0516 GMT.
Dubai’s index, which was one of the most favoured destinations by regional funds according to a poll conducted by Reuters last month, looks set to end the week with about 1 percent losses.
The index, however, is still up 3.2 percent since the start of the year and is trading at a discount to most other regional markets.
“This was not a good week for companies, especially not for the construction ones,” said a Dubai-based trader.
“But I don’t think sentiment has been soured, I believe some funds will now find opportunity to buy on price dips,” he added.
On Wednesday, Cairo’s index, last at 12,448.35 points, confirmed a break below technical support at its early February low of 12,578 points. This triggered a double top formed by the highs of January and February and pointing down to about 11,500 points.