Gulf markets soften

Gulf markets soften
Published: 10 January 2017 - 6:39 a.m.
By: Reuters

Stock markets in the Gulf may soften on Tuesday after crude oil prices suffered heavy losses overnight, but Dubai may outperform because it is technically bullish.

Brent futures lost nearly 4 percent on Monday over doubts that oil producers' agreed reductions to output would rebalance an oversupplied market.

Petrochemical shares in Saudi Arabia, which make up roughly one-fifth of the stock market's value, may weigh on a market that has been correcting since the start of this year. The main index is down 1.8 percent since Jan. 1; last at 7,082 points, it has technical support on its mid-December low of 7,002 points.

However, shares in the second largest telecommunications firm, Eithad Etisalat (Mobily), may be bid up after the company announced it had appointed Ahmed Abdelsalam Abdelrahman to replace its chief executive Ahmad Farroukh effective Jan. 9. The appointment could help the company move beyong its earnings restatement scandal.

Dubai's index, last at 3,721 points, may fare relatively well after confirming a break in the last two days above resistance at the mid-December peak of 3,659 points. That level is now support.

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