MIDEAST STOCKS-Gulf bourses may weaken further after oil slips – Reuters

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DUBAI May 23 Stock markets in the Gulf face
further downward pressure on Monday after oil prices weakened
and as trading volumes shrink ahead of the holy month of Ramadan
and the summer holidays.

Brent oil is down 0.5 percent to $48.50 a barrel in
Asian trade on a strong U.S. dollar and signs that global crude
supply is holding up despite unplanned outages increasing to at
least five-year highs.

Local day traders have been leading the stock markets lower
since the end of last week, cashing out ahead of Ramadan, which
historically sees low volumes in some markets.

On Sunday Dubai’s index confirmed a break below
technical support on the late March and early May lows of
3,248-3,256 points. That triggered a bearish head & shoulders
pattern formed by the highs and lows since March and pointing
down to the 2,800-point area.

Saudi Arabia’s bourse has also been slipping, pulled
down by petrochemical shares which had outperformed over the
last month. But some investors are allocating funds to
beaten-down retail industry shares.

Retailers Jarir Marketing and Fawaz Alhokair
are up 1.7 percent and 25.5 percent since last week.

(Reporting by Celine Aswad; Editing by Andrew Torchia)

MIDEAST STOCKS-Gulf bourses may weaken further after oil slips – Reuters}