ICEC

Markets may stay sluggish, ADNOC plans could support Abu Dhabi

Middle East stock markets may again have little upside on Tuesday because of geopolitical worries, although the privatisation plans of Abu Dhabi National Oil Co (ADNOC) could continue to support that market.

In international markets, Asian stocks are marginally higher while Brent oil futures are at $62.25 per barrel, 4 cents above their last close.

In an interview with Reuters on Monday, ADNOC’s chief executive described a major shake-up plan to privatise its services businesses, venture into oil trading and expand partnerships with strategic investors. On Monday, the company detailed plans for the initial public offer of shares in its distribution unit.

The plans could attract new money to Abu Dhabi’s stock market and possibly expand its weighting in international indexes; investors think authorities will be keen to see that the market is healthy to ensure a successful IPO.

In Dubai, Emaar Properties, last at 7.68 dirhams, has been testing major technical support at 7.60 dirhams, which was its low early this month and resistance between March and May.

This level would be a logical place for a rebound, while any clean break would point down to the June low of 6.96 dirhams. The stock has been sliding since late last week, when it priced the IPO of its local real estate development unit in the lower half of an indicative range. Source: Reuters

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