Gulf markets sideways; MSCI inclusion eyed
Gulf markets are seen trading on a cautious note ahead of an MSCI decision on a possible index upgrade for UAE and Qatar, while positive global markets may help region recover Monday’s losses.
“Our markets will be cautious and fairly range-bound today, with people waiting for MSCI news tonight,” says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
US equities moved higher, pulling global stock indexes up to break-even levels, and bond prices fell, erasing early gains as fears about U.S. stocks, where revenue is not driven by Europe, ebbed over contagion from Greece’s debt crisis.
“Regional markets were a little bit oversold yesterday. Global markets should help to gain back some ground,” says Wakeman.
Most Gulf markets fell on Monday after Goldman Sachs downgraded some UAE banks and cut price targets, while oil prices weighed on Saudi Arabian shares.
Brent slipped on Tuesday on continued uncertainty over the Greek debt crisis, narrowing its premium to US crude futures which rose on bargain hunting after losses in the previous session.
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