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MIDEAST STOCKS-Gulf may consolidate as oil rises, global markets cheer French election
May 8, 2017 / 5:35 AM / 6 months ago

MIDEAST STOCKS-Gulf may consolidate as oil rises, global markets cheer French election

DUBAI, May 8 (Reuters) - A slight recovery in oil prices and an overall positive mood in global shares following the outcome of the French election may help lift major stock markets in the Gulf on Monday after they fell 1 percent or more in the previous session.

Brent crude futures were at $49.73 per barrel at 0508 GMT, up 1.3 percent from their last close.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 percent, snapping a three-day losing streak, while U.S. stock futures briefly touched a record high, on investor relief after centrist Emmanuel Macron comfortably won the French presidential election.

But regional markets have been lagging their emerging market peers so far this year, and first-quarter results did little to move funds aggressively into the market, suggesting those markets may continue to trail.

“As we approach the end of the reporting season, with most companies having done their AGMs (annual general meetings) and gone ex-dividend, investors’ attention will turn back to impact from the macro-economics and the prevailing oil dynamics,” said Farid Samji, head of asset management at Dubai based Daman Investment.

Samji added that liquidity-sapping rights issues and corporate actions from smaller sized companies like Arabtec and Drake & Scull would also grab attention.

“We expect small caps to be in focus too as swing traders take charge in the runup to the holy month of Ramadan.”

Dubai’s index, last at 3,384 points, faces resistance at 3,450, according to technical analysts at NBAD Securities.

“Short term trend still remains bearish headed towards the second support zone at 3,360 points,” NBAD Securities said in a note. (Reporting by Celine Aswad; Editing by Amrutha Gayathri)

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