GCC stock markets could continue to rise this week as the decreasing number of covid cases fuels hopes of stronger economic activity and the revival of international travel. At the same time, markets have benefited from the positive atmosphere in world stock exchanges as the earnings season is revealing to be higher than expected. Figures in particular in the US, should increase investors’ appetite for risk. Moreover, a large number of economic publications are scheduled this week, which should give a hint on where major economies are headed.
Oil
Oil prices should also provide significant support to the equities markets in the region. Crude prices are could rise further this week as the spread between demand and production continues to widen. Demand is expected to improve as temperatures in the northern hemisphere decrease with the approach of winter. Additionally, utilities and factories are increasingly switching to oil as an energy source as natural gas and coal remain at high price levels. Meanwhile, production levels stagnate as OPEC+ kept the same output rhythm.
Dubai Stock Market
The Dubai stock market could see additional increases this week as it breaks with last month’s price correction supported by the positive atmosphere that came with the earnings season. The market should also see some support as the economy is expected to improve further as covid cases continue to drop thanks to the success of the country’s vaccination campaign.
EMAAR
EMAAR malls' stock could see some appreciation as the sanitary situation continues to improve. Covid cases in the Emirates have sharply decreased thanks to the high number of vaccinated people while the overall pandemic is subsiding around the world. This should spur additional economic activity in its commercial centers. The stock price could also rise as the merger with EMAAR Properties draws nearer.
Air Arabia
Air Arabia’s stock price could continue recovering towards its pre-pandemic peak as international traffic improves thanks to decreasing covid cases worldwide and reduced travel restrictions. The stabilizing economic situation should also draw tourists and business travelers away from their homelands.
Saudi Stock Market
The Saudi stock market could see additional increases potentially surpassing its 2008 peak in a durable manner. The market remains supported by the strong oil prices and the forecasts of increasing demand for crudes. The positive mood in stock markets worldwide is also pushing local equities to the upside. Finally, the news of additional removal of sanitary restrictions should come as a relief as the country removed distancing requirements for pilgrims while the sanitary situation continues to improve.
Saudi Ceramics
Saudi Ceramics’ stock could start recovering after its last price correction during which investors collected their gains. The company should benefit from the improvements in the real estate sector in the region as international investors return.
Egyptian Stock Market
The Egyptian stock market could see additional increases this week buoyed by the positive atmosphere as it approaches last month’s peak. However, the main index remains exposed to price correction as investors could move to secure their gains after two weeks of non-stop upside rally.
-Ends-
Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. Exness does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
For more information, contact:
Elizabeth Rayment
☏ + 971 585 930 784
☏ + 44 7458 680 310
E elizabeth@yourmindmedia.com
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
