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MIDEAST STOCKS-Gulf may consolidate as oil recovers, volumes may stay low
July 10, 2017 / 5:52 AM / 5 months ago

MIDEAST STOCKS-Gulf may consolidate as oil recovers, volumes may stay low

DUBAI, July 10 (Reuters) - A small recovery in crude oil prices and upbeat global stock markets may help their Gulf counterparts consolidate on Monday, but volumes could remain thin as investors await quarterly earnings.

Brent contracts were up 0.9 percent at $47.11 a barrel in Asian trade, recovering slightly from the 3 percent drop on Friday.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.6 percent while Japan’s Nikkei rose 0.7 percent.

“The majority of trade in Gulf stock markets will be momentum trading,” said a Dubai-based broker.

Analysts expect second-quarter results, which have already started rolling out in Saudi Arabia, to show a slight improvement for banks while earnings for the oil-linked sector may shrink. Analysts at Riyad Capital expect the Saudi petrochemical sector’s total earnings to fall 13 percent in the second quarter.

Shares of Saudi Basic Industries may outperform its peers on Monday after it started commercial operations at one of its synthetic rubber joint venture facilities. SABIC said it started operation at full capacity and expects the financial impact to be reflected in the third quarter of 2017.

Reporting by Celine Aswad; Editing by Jacqueline Wong

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