Politics to dominate trade in Egypt, Kuwait

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(AFP/Getty Images)

(AFP/Getty Images)

Regional politics will guide Middle East investors on Tuesday, with bargain hunters looking for opportunities in Egypt should the country's political crisis ease.

Egypt's Supreme Judicial Council has cleared the way for a referendum on a new constitution which President Mohamed Mursi hopes will ease tensions between his Islamist supporters and opponents.

Widespread protests broke out recently over a decree Mursi issued on November 22 that greatly expanded his powers.

Cairo's benchmark index lost 1.4 percent on Monday, edging towards last week's four-month low on fears that a conflict between the judiciary and government bodies would intensify.

"Internal issues are overshadowing [international] story lines, which have faded to a certain extent," says Akber Naqvi, hedge fund portfolio manager at Al Masah Capital.

"Europe is not as volatile. It's obvious why regional markets are looking inwards. Once it changes, they could go back to following the international lead."

In Kuwait, the ruler accepted the government's resignation on Monday, a step designed to make way for a new cabinet after parliamentary elections boycotted by the opposition.

Under the constitution, a new government must be formed before the first session of the new parliament. Emir Sheikh Sabah al-Ahmad al-Sabah said the new parliament would convene on December 16.

The chamber is expected to be more cooperative with the government than its predecessor because of the opposition boycott of the vote.

Analysts hope this will kick-start a long-stalled KWD30bn (US$106.50bn) development plan.

In the United Arab Emirates, trading will resume after a two-day public holiday for National Day.

Elsewhere, Asian shares slipped on Tuesday after a plunge in US manufacturing activity hit American stocks and the dollar, while the euro hovered near a six-week high on optimism over Greece's plan to buy back debt.

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
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