The gulf stock markets are expected to achieve more gains in the new year, on the back of the commitment of OPEC members and other major producers to the oil output reduction plan, according to financial analysts.
The positive sentiment will also supported by the expected positive financial results achieved in 2016, which will soon be revealed by many of the market leading companies.
From the beginning of 2016 until mid-December, gulf markets had a mixed performance, with the Saudi Stock Exchange (Tadawul) leading the gainers, and Bahrain Bourse leading the decliners.
Financial analyst, Hussien Al-Sayed, told Mubasher that the beginning of 2017 might come with positive signs, as the OPEC deal is expected to come into effect which will have a big effect on the oil prices and consequently the guld markets.
Al-Sayed added that the Saudi market positive performance in Q4-16 was supported by the 2030 Vision and the OPEC deal, he expects Tadawul to continue the rising trend in the beginning of the new year, targeting the level of 8,000 to 8,300 points, with maintaining the support level at 6,600 points.
Meanwhile, the Dubai Financial Marker (DFM) will target the levels of 4,000 to 4,500 points, after preserving the level of 3,450 points, and the same goes for the Abu Dhabi Securities Exchange (ADX), according to Hussien Al-Sayed, who expects it to target the area of 5,000 to 5,200 points.
On the other hand, the Qatar Stock Exchange (QSE) has been recovering from a declining wave in 2016, after the FTSE emerging markets index listing, which will be completed through the second phase in March 2017, which would help attract more foreign investments, said Al-Sayed.
QSE is expected to target the levels of 11,000 to 11,500 points, he added.
Financial analyst Mohamed Sonbol told Mubasher that the gulf markets saw tough beginnings in 2016, and then most of it were able to recover by the year end to offset losses except for the Qatari bourse.
Sonbol also indicated that strong buying activity also emerged in the gulf markets in H2-16, and were able to absorb the chocking results of the US presidential elections.
The OPEC deal provides great support for the gulf markets, while the effect of the US interest rates on the gulf stocks will remain minor, and is expected to decline in 2017. (Mubasher)