DUBAI Oct 4 Saudi Arabia's stock market may
rebound moderately on Tuesday after Brent crude oil held firm
over $50 a barrel overnight and the index closed well off its
intra-day low on Monday, even though its finish was the lowest
since March 2011.
NCB Capital said in a note that the outlook for the Saudi
petrochemical sector was "positive" because of last week's OPEC
agreement to cut oil production and the sector's international
exposure, which protected it from a weakening domestic consumer
Saudi domestic-demand driven companies were dumped en masse
last week after the government announced plans to reduce civil
service employees' compensation packages, and they have
continued to trend lower this week.
Worries about the domestic economy are not likely to go away
any time soon, but many stocks may have fallen enough to attract
some buying-back, at least on a short-term basis. The Saudi
index, last at 5,416 points, has major technical support on the
March 2011 intra-day low of 5,232 points.
Any rebound in Saudi Arabia could buoy other Gulf bourses,
although Dubai's index turned technically bearish on
Monday when it closed 1.9 percent down at 3,408 points, breaking
technical support on the August and September lows of
3,430-3,442 points, which becomes immediate resistance.
Aramex may attract interest after it said it had
established an e-commerce joint venture with state-owned
Australia Post, in a move that could herald a new expansion
drive by the Dubai company.
(Reporting by Celine Aswad; Editing by Andrew Torchia)