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A Window to the World – By: Mahmoud Jamal
Direct: Analysts said for "Mubasher" that the Gulf markets during the current week and at the end of July should face decisive events to chart the way for its indicators early next month.
Analysts pointed out that five key factors would condition this trajectory towards the markets, starting with the decision of the US Federal Reserve, which should adopt the first reduction of its interest after four years of semi-continuous rise.
The Fed meeting is very important this time in a context of speculation that the bank will reduce interest rates for the first time in ten years. Or US central bank holds monetary policy meeting Tuesday and Wednesday of this week.
Compbad directions
Capital markets expert Ihab Rashad expects Gulf markets to end their mixed performance during the Monday and Tuesday sessions on the impact of medium-term results. which is the compbad of current stock market trends..
Yesterday's announcement impacted some of the Gulf's leading stocks, including Saudi Basic Industries Corp. (SABIC), which lost 0.7% after a second-quarter decline in earnings as a result Lower average selling prices and lower company share in the results of badociates and joint ventures..
He pointed out that the Saudi market yesterday managed to consolidate above 8800 points, which allows him to complete the increase, despite the unexpected results of "SABIC"He said.
It is likely that the index will seek to accelerate the pace of the rise and restore the levels of 8900 points to reach 9090 points, given the continuation of the business related to the purchase of & # 39, foreign investors. Confirming that levels will remain at 8,800 points, significant levels of support to maintain the ascending path.
Rashad said the Fed's decision this week will be a determining factor in the performance of property values whose business depends on borrowing for the completion of projects, while the evolution of banking stocks , source of loans for this sector, will determine the economies of the Gulf countries..
He pointed out that the Dubai financial market, one of the most attractive markets to date, according to this month's data in terms of growth rate and liquidity. At the end of the month, compared to neighboring markets, the Dubai index should record a 7% rise in its best monthly performance in two years.
He pointed out that the attractiveness of the Dubai market lies in the attractive prices obtained by the shares, especially the real estate, emphasizing that the economic stability that characterizes the country, in addition to the government's efforts to attract foreigners by reducing management fees and canceling others.
He pointed out that the UAE and Saudi markets offer good long-term investment opportunities, especially in the services, real estate and banking sectors..
It is likely that Gulf markets will generally experience a rise after summer and annual leave given the tendency of global institutions to successfully upgrade some of their emerging market indicators..
In the coming months, MSCI will launch the second phase of the project Listing of Saudi shares in its index For emerging markets, which could add additional flows of foreign funds ranging from $ 6.3 billion to $ 8.2 billion.
Middle East funds plan to continue to increase their investments on the Kuwait Stock Exchange over the next three months as MSCI announced Kuwait's shares will be listed for its main markets index Emerging in 2020, according to a previous poll of "Reuters"He said.
Expected results
Raed Diab, Vice President of Investment Research, KAMCO, said: "Mubasher" That the current recovery in some Gulf markets meets the expectations of good results for the first half of this year, especially for the banking sector.
According to press reports, international financial institutions, including Hermes, were expecting a 10% growth in the banking sector in the Middle East, particularly in the Gulf region, in the second quarter of this year..
Diab pointed out that markets are betting on a rate cut next week, with positive effects on the real estate sector in particular.
It is likely that the positive market atmosphere will continue, particularly in the United Arab Emirates, which is showing remarkable results in the coming period, pending more positive corporate results..
appointments:
The general reserve of the Saudi government increases by 20.6 billion riyals by the end of June
SAMA's badets increase 1.3% from one year to the next in June
Saudi Arabia and Bahrain have set up a coordinating council to promote bilateral relations
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