DUBAI Feb 22 Firmer crude oil prices and upbeat
global stock markets may encourage investors to buy shares in
the Gulf on Wednesday, though Dubai may lag after turning
On Tuesday Brent oil futures reached their highest
since Feb. 2 at $57.31 a barrel, before closing at $56.66. They
are now at $56.90. MSCI's broadest index of Asia-Pacific shares
outside Japan is up 0.5 percent.
Dubai's index sank 1.2 percent to 3,560 points on
Tuesday, confirming a break of support on the mid-February low
of 3,608 points; this triggered a double top formed by the
January and February peaks and pointing down to around 3,500
points. The 3,608 point level is now resistance.
However, the market remains appealing on valuation grounds,
at a trailing price-to-earnings ratio of about 9.7 times,
according to Reuters data. Saudi Arabia's index is at
14.7 times earnings.
"This is the point where technical analysts and fundamental
ones differ in opinion, but I think that ultimately the market
is well-positioned compared to other emerging markets in the
long term," said a Dubai-based portfolio manager.
(Reporting by Celine Aswad; Editing by Andrew Torchia)