Hopes for US political deal to support Gulf markets

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Hopes that U.S. politicians may find a way as soon as this week to end the U.S. government shutdown and avoid a debt default look set to support Gulf markets on Sunday, although short-term technicals suggest major gains are unlikely.

U.S. stocks and global oil prices rose on Friday partly because of bets that a U.S. political deal could be reached. While that process might take another few weeks, it could eventually trigger a global rally in stocks.

However, short-term technicals for several Gulf markets have weakened. Dubai closed well off its intra-day high on Thursday as 14-day momentum posted a negative divergence, a classic sign of a pause in an uptrend. The index has immediate support around 2,750 points, where it peaked in August.

Saudi Arabia's index has established significant resistance around 8,070 points in recent weeks while 14-day momentum for the Kuwait market dropped below zero on Thursday.

In Dubai, stock speculators may react positively to the government's announcement on Saturday of some details of its plans to develop the emirate into a centre for Islamic business activity.

Officials said one of their focuses would be growing the Islamic re-insurance sector, which could boost shares in Dubai Islamic Insurance and Reinsurance Co as well as Takaful Emarat Insurance and Dar Al Takaful.

Ajman Bank said it had sacked its Chief Executive Mohammed Zaqout and put the chief financial officer temporarily in charge, less than six months after appointing Zaqout to lead the bank; the reason for the sacking was not given. Ajman Bank shares rose sharply erlier this year but since the end of July have underperformed the market, dropping 13 percent.

Related:
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
Risky business

Risky business

Libya’s stock market is one of the smallest in the Arab world...

'The gold rush is over'

'The gold rush is over'

Many blue chips are reviewing their emerging-market strategies...

Money talks for Gulf SWFs

Money talks for Gulf SWFs

The Gulf’s oil-rich sovereign wealth funds are seeking to increase...

2
Most Discussed
  • 15
    Germany puzzled as UAE think tank ordered to close

    Matt, your words sound kind of funny given the role the Britain has played in this region for so many decades.
    And given the democratic tradition that... more

    Thursday, 17 April 2014 7:10 PM - one of the joes
  • 10
    UAE father who whipped son to death wins appeal

    "Under Sharia, a parent cannot be executed for killing their child"
    A spouse could be executed if he/she kills his/her spouse, as none of them is... more

    Friday, 18 April 2014 3:38 PM - Nihar
  • 3
    To diet or not to diet?

    It is best to eat by your blood type. Following this diet is miraculous. Generic diets don't always work as certain foods are not good for the individual... more

    Friday, 18 April 2014 11:49 AM - Shamira Mitha
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams