Gulf may have firm tone with global trend

Gulf stock markets may have a moderately firm tone on Tuesday, following two days of general weakness, as global bourses climb in response to the end of the U.S. government shutdown.

MSCI’s broadest index of Asia-Pacific shares outside Japan is up 0.7 percent to a fresh record high while Brent oil has gained 0.5 percent to $69.38 per barrel, returning towards its recent three-year highs above $70.

However, some major indexes face significant technical resistance. Saudi Arabia, last at 7,481 points, has resistance at the July peak of 7,586 points, while Dubai , last at 3,501 points, has in recent days failed a test of resistance around 3,540 points, which was support in October.

In Kuwait, the biggest bank, National Bank of Kuwait , reported fourth-quarter earnings that were in line with estimates, while its proposed cash and bonus share dividend were the same as last year.

But Boubyan Bank may attract some interest after recommending a 7 fils per share cash dividend and a stock dividend of 5 shares per 100 for 2017, up from 6 fils and 5 shares for 2016. Source: Reuters