DUBAI, UAE — Investors in the GCC region are gearing up for a week of volatility as markets gradually reopen after long holidays in some cases, according to Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
Traders are expected to scramble to incorporate changes in sentiment following last week’s data, while keeping an eye on the publication of global data including US company earnings and GDP figures, he said.
Oil prices could come under additional pressure due to demand concerns and approaching central bank meetings, which could erode expectations. There are concerns that the market could return to pre-OPEC cut levels, although supply concerns could remain present with OPEC ready to intervene to regulate price trends, added Reyad.
In Dubai, the stock market rebounded today after losses recorded last week, which could help the main index maintain its uptrend for a longer time thanks to strong local fundamentals. The real estate sector, in particular, is seeing strong performances as demand for residential units continues to boom, which could serve as a catalyst for the market at large.
The Abu Dhabi stock market, on the other hand, is seeing some volatility as investors react to declining oil prices and remain cautious after the market rebounded to a certain extent. This could result in the main index recording new price corrections. Performances among individual stocks remain mixed, leaving the market without a clear direction.
The Qatari stock market could reopen this week with new pressures on prices as investors remain cautious. Stagnating natural gas prices could also contribute to potential declines, Reyad pointed out.