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MIDEAST STOCKS-Gulf may follow oil lower with Brent below $50
May 7, 2017 / 5:44 AM / 7 months ago

MIDEAST STOCKS-Gulf may follow oil lower with Brent below $50

DUBAI, May 7 (Reuters) - Stock markets in the Gulf may fall on Sunday following the tumble in oil prices at the end of last week, which brought Brent crude below $50 on a sustained basis for the first time this year.

Brent plunged as low as $46.64 a barrel. It ultimately rebounded to close at $49.10, but its weakness may damage equity markets significantly, especially with regard to petrochemical shares.

“When oil prices fall over 5 percent, portfolios with major asset allocations will start to get very nervous...We may see some big ticket exits this week if crude stays below $50 a barrel,” said a Jeddah-based broker.

The Saudi Arabian stock index, last at 6,924 points, has minor technical support at the April low of 6,886 points; any clean break would leave no major support before the March low of 6,710 points. (Reporting by Celine Aswad; Editing by Andrew Torchia)

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