Asian markets see modest gains, GCC likely to follow
Gulf markets are likely to see a boost in sentiment, tracking modest gains in Asian markets, after Greece's parliament approved the deeply unpopular austerity bill, making a messy default less likely.
But local markets are unlikely to rally significantly on the news the bill had passed as investors had priced such a move.
"To a large extent, this was expected. If we didn't get the vote through, you would've seen panic," says Abdul Kadir Hussain, chief executive and fund manager at Mashreq Capital. "The markets shouldn't react negatively, they've already gone up a lot and priced in some relatively benign news in Europe."
Asian shares and the euro gained modestly on Monday, relieved after Greece came a step closer to securing a much-needed bailout fund and avoiding a messy default.
Brent crude rose above $118 on Monday, supported by a weaker dollar and expectations of a revival in demand growth.
Dubai-based investment bank Shuaa Capital is likely to see selling pressure after reporting a wider 2011 loss, of 293.8 million dirhams ($80 million), as it booked provisions and one-off charges.
Shares in Shuaa rose 14.9 percent on Sunday, closing at their highest since Nov. 22.
Kuwait's Gulf Bank will be in focus after reporting a 60-percent jump in full-year net profit in 2011, despite a significant decline in fourth-quarter earnings compared to the same period in 2010.
Meanwhile, Bahrain-based alternative investment manager Investcorp said on Monday it made a net profit of $5.3 million in the first half of fiscal year ending Dec 31, 2011, taking a hit from declining global hedge funds revenues.
In other company news, Dubai lender Emirates NBD's general manager of global markets and treasury John Eldredge is leaving the bank, two sources told Reuters on Sunday.