DUBAI, May 7 (Reuters) - Stock markets in the Gulf may fall on Sunday following the tumble in oil prices at the end of last week, which brought Brent crude below $50 on a sustained basis for the first time this year.
Brent plunged as low as $46.64 a barrel. It ultimately rebounded to close at $49.10, but its weakness may damage equity markets significantly, especially with regard to petrochemical shares.
“When oil prices fall over 5 percent, portfolios with major asset allocations will start to get very nervous...We may see some big ticket exits this week if crude stays below $50 a barrel,” said a Jeddah-based broker.
The Saudi Arabian stock index, last at 6,924 points, has minor technical support at the April low of 6,886 points; any clean break would leave no major support before the March low of 6,710 points. (Reporting by Celine Aswad; Editing by Andrew Torchia)