Analysts: Disappointment over the OPEC deal delays the recovery of the Gulf bourses

30/05/2017 03:48 | Number of readings: 45

Trend Press

LONDON (Reuters) - Gulf markets are likely to see more contrast in Tuesday's session after growing disappointment over OPEC's agreement to freeze production, analysts said, especially after last week's meeting of world oil producers did not take stronger action to support crude prices.

Gulf stock markets were mixed at the end of trading on Monday as the Saudi and Dubai bourses recovered slightly from last week's losses.

The Organization of the Petroleum Exporting Countries (OPEC) and some outside producers agreed last week to extend a commitment to cut output by about 1.8 million bpd until the end of the first quarter of 2018.

The loss of Gulf shares in the last sessions was due to the disappointment that hit the dealers, after the oil producers from OPEC and outside the extension of the agreement to reduce production at the same pace of the current reduction; which caused a significant drop in prices Raw.

Alazmi stressed that in light of this negative news, the opportunities in the markets of the region currently only fit with professionals only in light of the circulation of portfolios of liquidity.

"Abu Dhabi Oil is close to resistance levels at $ 49 and will push the region's markets to more volatile performance under speculative behavior," Mahmoud Abuzaid, financial analyst at Namaa Consulting, told Mubasher.

Hamed Al Anqari, market analyst for Mubasher, said: "Equity investors should monitor technical oil levels as supply of US crude grows.

Al-Anqari noted that he supports the continuation of the opening of buying positions, especially shares taken from bottoms levels, and recommended that traders wait until the next technical targets are achieved.

The indices of the Gulf and Egypt markets closed at the end of Monday's session:

Saudi Arabia .. The index rose 0.6% to 6822 points.

The index rose 0.7% to 3,318 points.

Abu Dhabi - The benchmark fell 0.1% to 4,493 points.

Qatar .. The index fell 0.1% to 10112 points.

KUWAIT: The index rose 0.2% to 6663 points.

Bahrain .. The index rose 0.1% to 1319 points.

Muscat .. The index dropped 0.03% to 5385 points. JH