Gulf markets are likely to take support from gains in Asian shares after Japan's central bank announced it would boost asset purchases
Gulf markets are likely to take support from gains in Asian shares after Japan's central bank announced it would boost asset purchases to stimulate the economy of the world's third biggest oil consumer.
Policy action in US over the weekend lifted investment sentiment across assets and Japan's move to further ease monetary policy will also boost confidence that governments are taking steps to stimulate global growth.
Asian shares rebounded from earlier losses and Brent crude rose to above US$112 a barrel on Wednesday. Investors concerns remained however about fiscal strains in Spain and deteriorating corporate profits.
"In some markets, bearish sentiment is turning to bullish. The Chinese government is also in the process of change and I wouldn't rule out monetary stimulus there," says Amer Khan, fund manager, Shuaa Asset Management. "There's a lot of support for markets, going into the year-end."
Elsewhere, Saudi Arabian telecom group Mobily may mark gains after it signed agreements with several third-party operators, aiming to secure market share ahead of a planned market liberalisation.
In Qatar, Doha Bank said it plans to raise its capital by 50 percent in the first quarter of 2013. The bank's shares are unlikely to react until closer to the date of issue.
In Kuwait, the finance minister said on Tuesday the Gulf state would not cut down on spending as a result of a plan to invest a greater percentage of its revenues in a rainy day fund, state news agency KUNA reported.
OPEC producer Kuwait announced plans on Monday to more than double the portion of state revenues it puts into its Future Generations Fund this fiscal year.
Investors in the Kuwaiti market however, are agitated to see progress on a US$130bn development plan, which many hope will boost the country's economy.