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MIDEAST STOCKS-Institutional funds may stay away as oil stalls below $50
May 10, 2017 / 5:54 AM / 7 months ago

MIDEAST STOCKS-Institutional funds may stay away as oil stalls below $50

DUBAI, May 10 (Reuters) - Sustained weakness in crude oil prices may keep institutional funds away from Gulf equities on Wednesday, while mixed results from mid- to small-sized companies will attract local retail traders, leaving markets vulnerable to swing trades.

Brent crude contracts were trading at $48.97 a barrel, climbing 0.5 percent from Tuesday, but have been trading below $50 since Friday.

Shares of Dubai’s DXB Entertainments may come under pressure after the amusement park operator reported a wider net loss to 287.4 million dirhams in the first quarter. This is the company’s second quarter of results after it opened its theme parks in October last year.

The company’s chief executive said the loss reflects the “normal trajectory of a business in its early phase of development”.

The company said it expected a dip in footfalls in the coming two quarters.

Smaller sized companies in Saudi Arabia released first quarter earnings overnight with mixed results compared to the prior year.

Saudi Paper Manufacturing made a narrower net loss, Saudi International Petrochemical almost doubled its net income, while Batic Investments and Logistics’ net profit fell by a little over a third.

The cut off date for Saudi companies to report interim earnings is May 11.

Reporting by Celine Aswad; Editing by Biju Dwarakanath

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