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MIDEAST STOCKS-Bourses to start week on strong footing
August 7, 2016 / 5:46 AM / a year ago

MIDEAST STOCKS-Bourses to start week on strong footing

DUBAI, Aug 7 (Reuters) - Stock markets in the Middle East look set for gains on Sunday after Wall Street jumped to a record high and emerging markets were boosted by a fresh round of stimulus from the Bank of England.

On Friday the Dow Jones industrial average rose 1.04 percent as a strong jobs report spurred optimisim and emerging market stocks were on track for a fourth week of gains with MSCI’s emerging market index rising 1 percent.

Cairo’s main equities index, which is traded by foreign investors, closed at a 13-month high on Thursday amid optimism over Egypt’s talks with the International Monetary Fund.

On Thursday, the fourth day of talks that are expected to last for another week to 10 days, Egypt said it was making good progress in the negotiations and expected parliament to pass a long-awaited value-added tax by early September.

“As Cairo inches closer to inking a deal with the IMF, the stock market will continue to be supported,” said Wafik Dawood, portfolio manager at Cairo-based Compass Capital.

Dawood added that any profit-taking by local traders might create some opportunities for foreign funds to buy value stocks.

In the Gulf, the United Arab Emirates bourses and Qatar may outperform Saudi Arabia and other markets since they are more exposed to foreign capital inflows. (Reporting by Celine Aswad; Editing by Andrew Torchia)

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