DUBAI, Sept 5 Gulf stock markets may consoliate
with a firm tone on Monday because of a surge in emerging market
equities, with MSCI's broadest index of Asia-Pacific shares
outside up 1.5 percent in early trade.
A purchasing managers' survey showing growth in Saudi
Arabia's non-oil private sector hit a 12-month high in August,
suggesting the economy may be stabilising after a sharp slowdown
driven by low oil prices and government austerity measures, may
also help sentiment.
However, there are few other positive factors for the Gulf
and oil prices have slipped back again, with Brent crude
down 0.6 percent at $46.55 a barrel, so sharp gains in regional
stocks still look unlikely.
The Saudi stock index climbed 1.3 percent on Sunday
in a broad-based rise but trading volume shrank from the
previous session, which was a negative technical sign.
Emaar the Economic City (EEC) could extend gains
after rising 3.5 percent on Sunday, when Reuters quoted a source
familiar with the matter as saying Saudi Arabia's top sovereign
fund, the Public Investment Fund, was in talks to invest in King
Abdullah Economic City, the huge project being developed by EEC.
Middle East Healthcare Co may be buoyed by its
announcement that Saudi tax authorities have agreed to its
request for a 13.6 million riyal ($3.6 million) tax credit.
(Editing by Andrew Torchia)