Posted on November 11, 2016

Stock markets in Dubai and Qatar recovered from the shock of a Donald Trump presidency in early trade on Thursday, mirroring global bourses, while Saudi Arabia’s index rose above minor technical resistance.

Following Trump’s election victory, world markets initially fell sharply but they are now bouncing back; the Thomson Reuter’s global index is up by one percent. Many economists believe that although there may be a period of uncertainty as governments and businesses await Trump’s policies, the Gulf region will be relatively resilient because it does not rely much on foreign capital. Because of its currency pegs, it could benefit from any protracted period of lower interest rates if the US central bank delays tightening.

Dubai’s stock market index, which underperformed its regional peers on Wednesday, rose 1.1 percent early on Thursday. DAMAC Properties, which is building a $6 billion residential and golf complex with Trump branding, was up 0.5 percent. Investment firm Shuaa Capital jumped 6.4 percent. In Qatar, the index rose 0.6 percent with gainers outnumbering losers 12 to three. Qatari Investors Group climbed 4.0 percent and oil drilling rig provider Gulf International Services was up 2.3 percent. Saudi Arabia’s index added 1.8 percent to 6,495 points after 45 minutes of trade, rising above technical resistance on the August peak of 6,396 points. If a break is confirmed, the next technical barrier is on the July peak of 6,703 points.

Domestic economy-oriented shares were some of the top gainers, with apparel and mall operator Fawaz Alhokair jumping 6.7 percent. Petrochemical shares were also strong as Brent oil futures edged up, nearing $47 a barrel. All 14 listed producers were up with mid-sized Nama Chemicals in the lead, up 3.8 percent.

source: AMEinfo

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