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MIDEAST STOCKS-Oil price slide, Greece likely to dampen region
July 6, 2015 / 5:28 AM / 2 years ago

MIDEAST STOCKS-Oil price slide, Greece likely to dampen region

DUBAI, July 6 (Reuters) - Another slide in oil prices and instability in international markets after the “no” vote in Greece’s referendum look set to push down Middle Eastern stock markets on Monday.

Brent crude futures have dropped below $60 a barrel in Asian trade, to their lowest levels since mid-April. This is negative news for the Gulf’s oil-producing economies.

Meanwhile, U.S. equity futures have dropped around 1.2 percent and MSCI’s broadest index of Asia-Pacific shares outside Japan is down 0.5 percent, suggesting the threat of a global market rout which the Middle East may not be able to escape.

While North African economies would generally benefit from lower oil prices, economic instability in the euro zone is bad for all of them, since Europe is a key trading partner and supplier of tourists.

The Egyptian stock index fell 1.2 percent to 8,218 points on Sunday, entering a band of strong technical support between 8,125 and 8,261 points, the December and May lows.

Any break of this support would be very bearish, triggering a triangle pointing down into the 6,800-point area in the longer term.

Among individual stocks, Saudi Arabian Fertilizers Co may come under pressure on Monday after its board proposed a cash dividend of 3 riyals per share for the first half of 2015. That was below the 4 riyals per share which the company paid for the corresponding period last year. (Reporting by Andrew Torchia; Editing by Prateek Chatterjee)

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