Gulf markets may trade with weak bias
Stock markets in the Gulf may trade with a weak bias on Wednesday after oil prices slipped again overnight and global bourses pulled back because of concern about lacklustre growth and creeping deflation.
At $45.03 a barrel, Brent oil is down 7 per cent from this year’s peak on April 29, while MSCI’s broadest index of Asia-Pacific shares outside Japan has dropped 1.1 percent on Wednesday morning.
The Saudi Arabian market’s failure to react positively to market reforms announced on Tuesday, including an easing of restrictions on foreign ownership and a move to second-day settlement in 2017, showed investors have little appetite to push shares up at present.
The Saudi index, last at 6,638 points, has technical support on its March peak of 6,525 points.
Dubai’s index, last at 3,324 points, has already broken below its March peak; chart support lies at the March low of 3,248 points.