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Gulf stocks trade narrowly as investors remain uneasy

Most Gulf bourses traded narrowly Monday, with investors torn between betting on further gains following a sharp rebound a day earlier or booking some quick profits and this lack of conviction indicates the bear trend could persist.

Markets have tumbled to such an extent this year that many stocks are considered cheap by traders and fund managers, even after Sunday’s rally.

“Sunday’s sugar rush is winding down,” said a Dubai-based trader. “Daily traders turned a quick profit and cashed out and so the markets may continue to see-saw.”

Dubai’s index rose slightly, then slipped into negative territory before again edging higher. It was up 0.3 percent at 0641 GMT.

Emaar Properties, which surged 8.0 percent on Sunday, fell 0.2 percent.

Arabtec, a stock favoured for speculative trade, fell 0.8 percent, erasing some of previous day’s 10.0 percent rise.

Abu Dhabi’s bourse slid at the market open before rising 0.2 percent as of 0706 GMT. Etisalat was the main support, climbing 0.6 percent.

In Qatar, the stock exchange gave back early-session gains to be down 0.7 percent at 0709 GMT.

Qatar National Bank (QNB), Doha’s largest lender dropped 0.5 percent.

Gulf International Services, an oil-related company, climbed 1.2 percent, adding to the 9.9 percent gains it made on Sunday.

Source: Reuters

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