MIDEAST STOCKS-Gulf bourses may weaken as investors book profits – Reuters

8 months ago Comments Off on MIDEAST STOCKS-Gulf bourses may weaken as investors book profits – Reuters

DUBAI May 22 Stock markets in the Gulf may
trade with a weak bias on Sunday as short-term traders book
profits because of a lack of strong positive catalysts.

Oil prices slipped on Friday as a stronger U.S. dollar
encouraged investors to sell, with Brent crude settling
down 9 cents at $48.72 a barrel.

“Stock markets in the Gulf are now in an adjustment phase
and I believe investors will book profits if there is a lack of
other positive stimulus in the market,” said Mohammad al-
Shammasi, chief executive of Riyadh-based Derayah Financial.

Dubai’s index, last at 3,230 points, fell on
Thursday below technical support on the late March and early May
lows of 3,248-3,256 points. A second straight close below that
area would confirm a break, triggering a bearish head &
shoulders pattern formed by the highs and lows since March and
pointing down to the 2,800-point area.

But while bourses in the United Arab Emirates were laggards
in the region last week, relatively attractive valuations may
limit losses; indexes in Abu Dhabi and Dubai are trading
at about 10.0 and 8.0 times trailing earnings, compared to
Riyadh’s 12.3 times, and also offer investors strong
dividend yields.

(Reporting by Celine Aswad; Editing by Andrew Torchia)

MIDEAST STOCKS-Gulf bourses may weaken as investors book profits – Reuters}