Global gains to boost Gulf; Egypt violence may weigh

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Strong rallies on global markets are likely to lift sentiment in the Gulf on Sunday, but deadly clashes in Egypt over the weekend may spur a risk-off stance from Cairo investors.

Saudi Arabia's measure rose 0.4 percent on Saturday. A positive lead from the kingdom, the only regional market trading on a Saturday, usually leads to an upbeat start to the trading week on other Gulf bourses.

Signs of a healthier European financial system and solid U.S. corporate earnings helped lift global equity markets on Friday. The U.S. benchmark S&P 500 index closed above the 1,500 mark for the first time in more than five years.

In Egypt, at least 32 people were killed on Saturday during protest at the sentencing of 21 people to death over a soccer stadium disaster. The violence is a sign of further instability and discontent in a political crisis facing Islamist President Mohamed Mursi.

Egyptian investors have cut their equity positions in recent sessions, but foreign funds have been net buyers, helping to limit losses on the Cairo bourse.

Elsewhere, Dubai's index hovers near a long-term resistance level around 1,793 points, the peak of October 2010.

"The market is at risk of correcting lower, cautioning us to move the stop loss higher at 1,765 points," MENA Corp says in a note. "Provided market conditions remain the same, the take profit level (at 1,830) will be reached soon."

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Blood on the bourse floor

Blood on the bourse floor

Arabtec’s share price collapse was the catalyst for a huge sell...

Taking stock

Taking stock

Gulf stock markets have seen a dearth of IPOs since the global...

Steering clear of the stock markets

Steering clear of the stock markets

Listing was all the rage three years ago, but IPOs have since...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 14
    Dubai Int'l T1 is too congested, says Indian airline boss

    Question: All you people, criticizing my comment, do you work for Air India by any chance?

    Additionally, for all the whiners, I will provide you... more

    Tuesday, 31 March 2015 12:50 PM - Mosa
  • 9
    Post traumatic stress?

    I once had a Emirates Post employee hang up on me when I asked her to repeat something. That said, the worst is my management company, Kingfield Management... more

    Sunday, 29 March 2015 6:07 PM - Sarah