DUBAI, Sept 7 Stock markets in the Gulf may
trade with a weak bias on Wednesday as recent gains in oil
prices fade and with investors becoming more cautious about
taking long positions before next week's Eid al-Adha holidays in
Brent crude, which hit a one-week high of $49.40 per
barrel on Monday after Russia and Saudi Arabia agreed to
cooperate on stabilising the oil market, have since fallen back
The short-lived bounce in oil prices initially boosted the
Saudi equities index but it fell back 0.2 percent on
Tuesday to 6,190 points, failing a test of technical resistance
at 6,226-6,257 points, the lows in early August and June.
Trading volume was the second lowest this year.
"This is a typical dead cat bounce, where the market
temporarily recovers in a downtrend but then continues to slide
lower," said a Jeddah-based portfolio manager, adding that only
a more concrete deal between top oil producers could sustain a
prolonged rally in the stock market.
In Dubai, Gulf Navigation may attract some
interest after it said it had signed a new settlement agreement
in its long debt dispute with Nordic American Tankers and that
its debt to Nordic American had now been settled fully.
Gulf Navigation did not give any details of the settlement,
but said: "This settlement and clearing of liability with NAT
marks a beginning of the end of the troubled past of the
Company...GulfNav is also in negotiations with its other major
creditors and is hopeful of reaching fair settlements soon."
In early 2014, a London arbitration panel found Gulf
Navigation was liable to pay $10.2 million plus direct costs and
interest to Nordic American. Gulf Navigation had total
liabilities of about $187 million at the end of last year,
according to its annual statement.
(Reporting by Celine Aswad; Editing by Andrew Torchia)