Gulf stock markets may have a firm tone Sunday, taking their cue from strong crude oil prices and upbeat global bourses, while Qatar’s index may recover slightly after the emir said he was ready for talks to end the Gulf crisis.
On Friday, MSCI’s gauge of stocks across the globe rose 0.11 percent to a fresh high. Brent oil held near five-month highs to settle at $55.62 a barrel and posted its biggest weekly gain since late July.
On Friday, Qatari Emir Sheikh Tamim bin Hamad al-Thani said Qatar was ready to sit at the negotiating table to try to end a dispute with its Gulf Arab neighbours. It is not yet clear how Saudi Arabia and its neighbours will respond to this, but the comments could help to stabilise Qatar’s stock market after it shed 3.1 percent last week to an April 2013 low.
“There is too much uncertainty around Qatar right now, and the full extent of how hard those companies have been hurt by this crisis is yet to be known,” said a Paris-based fund manager.
Foreign funds sold Qatari equities aggressively last week as there was no sign of the political deadlock between Doha and four Arab states being resolved.