Gulf may have firm tone, Saudi in uptrend

DUBAI – 11 December 2017: Major Gulf stock markets may have a firm tone on Monday after their rises on Sunday, particularly Saudi Arabia, which is technically short-term bullish.

The Saudi index rose 0.8 percent points to 7,145 on Sunday, bouncing for a second straight day from technical support around 7,000 points in very heavy trade - another positive technical sign.

Exchange data released late on Sunday showed foreign investors turned net buyers of Saudi Arabian shares last week for the first time since the country’s anti-corruption purge was announced early last month. This suggested concern about the impact of the purge on the economy has faded.

Dubai’s stock market may be encouraged by the release of a very expansionary 2018 budget for the emirate; spending is to jump 19.5 percent from the original budget plan for 2017 because of a leap in infrastructure allocations.

Asian stocks are marginally higher with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.2 percent, while Brent oil has inched 24 cents lower to $63.16 a barrel, drifting away from its recent 2-1/2 year peak of $64.65.

Kuwait’s stock exchange has announced a plan to improve liquidity and attract more investment by dividing the market into three: a “first” market for the most liquid stocks, the main market and an “auction” market for the most illiquid stocks. However, it is not clear that the plan will have much impact in changing the dynamics of the bourse.