DUBAI - Saudi Arabia's stock market may keep a firm tone on Tuesday before the scheduled release after the close of the kingdom's 2018 state budget, while other markets have few reasons to move significantly.
The Saudi stock index surged 1.4 percent in active trade on Monday, with cement shares leading on expectations that the budget will include higher infrastructure spending.
After the close on Monday, Saad al-Shahrani, general director of the finance ministry's macro-fiscal policy unit, said the ministry would announce a "budget of expansion and development and investment".
Analysts do not expect the budget to contain a big rise in government spending; much stimulus for the private sector will be in the form of soft loans offered by state funds, which in the past has had limited impact in boosting growth.
Nevertheless, the positive spin authorities are putting on the budget, and the hope that 2018 could see a bottoming out of economic growth, may continue to help the Saudi stock index bounce from technical support on its 200-day average.
Internationally, MSCI's broadest index of Asia-Pacific shares outside Japan
(Reporting by Andrew Torchia) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
The Saudi stock index surged 1.4 percent in active trade on Monday, with cement shares leading on expectations that the budget will include higher infrastructure spending.
After the close on Monday, Saad al-Shahrani, general director of the finance ministry's macro-fiscal policy unit, said the ministry would announce a "budget of expansion and development and investment".
Analysts do not expect the budget to contain a big rise in government spending; much stimulus for the private sector will be in the form of soft loans offered by state funds, which in the past has had limited impact in boosting growth.
Nevertheless, the positive spin authorities are putting on the budget, and the hope that 2018 could see a bottoming out of economic growth, may continue to help the Saudi stock index bounce from technical support on its 200-day average.
Internationally, MSCI's broadest index of Asia-Pacific shares outside Japan
(Reporting by Andrew Torchia) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
