Global equity markets performed positively during the week on the back of encouraging economic data and measures such as slashing tariffs on USD 75 billion worth of US goods by the Chinese authorities. Moreover, investors are hopeful that global economies might be resilient to face the coronavirus outbreak in China. Brent crude continued the losing streak for the fifth consecutive week, as it was down 6.34% for the week and 17.47% for the year so far.
The rapidly spreading coronavirus is clouding demand outlook while OPEC awaits Russia’s decision on production cut. The decline in oil prices is particularly worrying for the regional markets as oil continues to drive the investors’ sentiments and public spending.
As a result, the regional markets performed negatively during the week with 5 out of the 7 indexes closing in red and 2 closing in green. Saudi Arabia was the worst performing index regionally with losses of 2.35%, while Egypt was the best performer with gains of 1.34%, followed by 1.22% in Oman. The effects of coronavirus outbreak in China is likely to be seen in coming weeks as more details emerge about the impact on business activities.
Moreover, investors will be keen to know the progress or steps taken to contain the virus from spreading any further. The regional markets might continue to remain under pressure as weakness in oil prices will weigh heavily on trading activity. On the other hand, the fourth quarter earnings announcements so far have not been encouraging enough to shift focus from the negative sentiments.
About Allied Investment Partners PJSC
Established in 2007, Allied Investment Partners PJSC is licensed by Central Bank of the UAE and Securities and Commodities Authority, and is a leading investment firm providing various services like Asset Management, Alternative Investments, Wealth Management, Securities and Custody Services, Corporate Finance and Investment Banking Advisory.
For more information, please visit http://aipuae.com/
For media enquiries, please contact Matrix Public Relations
Krishika Mahesh: Krishika@matrixdubai.com
Or call: 04 34 30 888
© Press Release 2020