DUBAI, Sept 20 Lower crude oil prices and
jittery global shares are likely to weigh on investor sentiment
on stock markets in the Gulf on Tuesday.
Brent futures were trading at $45.79 a barrel in
Asian trade, down roughly 9 percent from its Sept. 8 peak of
MSCI's broadest index of Asia-Pacific shares outside Japan
slipped 0.2 percent, after major U.S. indexes
ended a choppy session nearly flat.
Dubai's index, which has been outperforming peers
this week, will likely witness some profit-taking at current
On Monday, Saudi Arabia's index tested a technical
support at last month's low of 5,911 points as investors dumped
shares across all sectors.
"A combination of factors has contributed to this
correction, chief amongst which is investors' concern that
corporate earnings for the third quarter could be particularly
depressed," said Mohamed Eljamal, the director of capital
markets at Abu Dhabi-based Waha Capital.
"Overall market valuations are also continuing to adjust in
order to reflect the new earnings norm, corporates are feeling
the squeeze both on the revenue side due to softer demand and on
the costs side due to subsidy removal."
Twenty-two Qatari listed companies will be added to FTSE's
secondary emerging market index on Tuesday, and Doha's share
index, which fell 4 percent on Monday, will likely trade
lower although the magnitude of decline may be less severe.
"Investors in Qatar can now focus on fundamentals rather
than the one-off event now," saia a Dubai-based portfolio
(Reporting by Celine Aswad; Editing by Biju Dwarakanath)