DUBAI, May 24 (Reuters) - Gulf stock markets may have a weak bias on Tuesday after oil prices continued to edge down overnight and Asian bourses fell near 10-week lows because of the risk of a U.S. interest rate hike in coming weeks.
There has been little positive news to support Gulf markets in recent days and trading volumes have been shrinking as the holy month of Ramadan and the summer holiday season approach.
In Saudi Arabia, a positive buzz surrounding the late April announcement of economic reforms has largely faded for now, and some fund managers think the market could react badly to details of the reforms that may be announced in coming weeks. These could include rises in taxes and government fees.
The Saudi index’s 3.1 percent tumble to 6,425 points on Monday broke minor technial support on the early May low of 6,574 points, leaving next support on the 100-day average, now at 6,237 points.
Dubai’s index, last at 3,216 points, is also technically bearish after this week confirming a break below technical support on the late March and early May lows of 3,248-3,256 points. That triggered a bearish head & shoulders pattern formed by the highs and lows since March and pointing down to the 2,800-point area. (Reporting by Andrew Torchia)