Gulf set to consolidate, Saudi has technical support

Gulf stock markets look set to consolidate with a possible downward bias on Thursday in the absence of positive factors, and with geopolitical issues, including the conflict in Yemen and the diplomatic rift with Qatar, still dampening sentiment.

However Saudi Arabia’s index, which fell 0.6 percent on Wednesday to 7,026 points, has strong technical support around 7,000 points, where the peaks in late October and November roughly coincide with the 200-day average, now at 7,015 points.

MSCI’s broadest index of Asia-Pacific shares outside Japan has stabilised after sliding on Wednesday, while Brent oil is at $61.39 a barrel after falling more than $1 overnight. Source: Reuters