Gulf may find support from positive mood in global markets, oil
DUBAI: A positive mood in global equities and crude oil markets may support stock markets in the Gulf, while mixed results from smaller companies may have little net impact on Saudi Arabia.
Global benchmark Brent futures gained 0.8 per cent to settle at US$ 52.42 a barrel on Friday, with analysts saying oil was helped by a good US jobs report.
The jobs report also boosted equities; financials were the best performing S& P sector on Friday. The pan-European FTSEurofirst 300 index rose one per cent.
In the Gulf, Dubai’s index, last at 3,675 points, is most exposed to international funds and may continue to outperform its neighbours.
“The market has gained almost 410 points (up 12.6 per cent) from the 3,265 bottom in just eight weeks and is poised to cross over its yearly high of 3,738 in the coming weeks,” said a note by NBAD Securities.
In Saudi Arabia, Emaar the Economic City may come under pressure after it reported an 85.4 per cent drop in its second-quarter net profit to 35 million riyals ( US$ 9.3 million).
The company cited a decrease in residential sales and higher financial charges.
But Al Andalus Property may be bid up after it made a second- quarter net profit of 27.6 million riyals, up 11 per cent from the prior-year period.
Gulf General Cooperative Insurance reported a slight dip in second- quarter earnings, while Allianz Saudi Fransi Cooperative Insurance reported a 24 per cent rise in net income. — Reuters