25/12/2014
With the support of the stability of oil above $ 60
Gulf markets bounce back with spending cuts fears
Gulf boursesresumed itsclimbyesterday,withdispelfears thatpayslower oilexport revenuesgovernments ofthe Gulf statesto reduceeconomic development projects,which would hurtcorporate earnings, with the exceptionof the twopossiblesmallerandfinanciallyweakerin the Gulf CooperationCouncil,Bahrainand Oman.Thereforesentimentimproved in theGCC stock marketsdramaticallyin recent days,and I gotmore support fromat leasttemporarystabilityto the price ofBrent crudeoilabove $60 a barrel.
Andfund managerssaidthat withthe decline ofpanicturnedattention tostocks thatlook more attractivein the wake ofthe sharp declineofmarketscurrentlyapproachingormimictheir counterparts inother emerging marketvalues.
SaidSachinMohindraportfolio manager atAbu Dhabi Investment Companyin a research note"correctionthat has occurredrecently inthe marketto reducethe number ofsharesofcompanies that arewell managedvalues toattractivelevels,particularly with regard tothe growth ofprofits."
"Thismakes usoptimistic about theoutlook forthe stock marketsin the Gulf CooperationCouncil (GCC)in2015".
Andsaid he wasmoreoptimistic about thestronglyassociated withdomestic demandin the GCCcompaniesbecause"the patchrecently hada severeand did notdifferentiate betweenthe stockbased on thefundamentals of thecompanies."
Dubai's benchmark rose3 percent,despitelower volumesby a thirdtoan average level,suggestingthat someinvestorswithdraw fromthe marketto spend theyear-end holidays.Andreal estate companiesdominatedtradingagain,whereincreased"homes"shareof 6.4per cent and"reconstruction"of real estate2.9per cent.
Abu Dhabi's indexrose1.4 per centled byreal estate stocks.JumpedESHRAQ-whichwas the mostheavily traded-the maximum15 per centtoday.Qatar's indexrose1.4 per centandjumpedBarwa Real Estate- the mostheavily traded-6.7 per cent.
ButIslamicHolding-an investment firm-Huiagainby the maximumdaily10per cent to98.10riyals.The stockof222.70riyalsand a decline inthe 11ofDecember(December)with thebubble burstfor its price, it seems.
Northe arrowstill up113percentso far this year,the share priceand therateofprofittoabout 30, for example,accordingtoThomson Reuters,compared with less than20sharestodebatehimin the field ofinvestment bankingandbrokeragestatements.
InMuscat,the indexrose2.5 percentto6377points, whileKuwait'sindexlost0.7 per centupto6547points.TheBahraini marketindexincreased0.4percentinthe indexto1407points.
