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MIDEAST STOCKS-Gulf to trade quietly, Qatar may continue slow rebound
June 13, 2017 / 5:44 AM / 2 months ago

MIDEAST STOCKS-Gulf to trade quietly, Qatar may continue slow rebound

DUBAI, June 13 (Reuters) - Gulf stock markets look set to trade quietly on Tuesday in the absence of major news, while Qatar could continue a gradual rebound from lows reached after other Gulf Arab states imposed an embargo on it last week.

The Qatari stock index rose 0.8 percent on Monday; is still down 8 percent since Monday last week, when Saudi Arabia and three other Arab states cut diplomatic and trade ties, but bourse data showed that while foreign funds remained net sellers of Qatari shares on Monday, the pace of their selling slowed.

This suggests some funds are willing to accept higher political risk now that valuations are lower. Qatari credit default swaps and international bond yields fell back substantially on Monday.

However, some analysts are still cutting targets for Qatari stocks, so any market rebound is likely to be limited and gradual. HSBC cut its target for Vodafone Qatar, which last closed at 7.76 riyals, to 7.15 riyals from 8.1 riyals.

Internationally, Wall Street edged down on Monday but Asian stocks are firm. Brent crude oil is slightly firmer at $48.58 a barrel. (Reporting by Andrew Torchia)

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