Gulf stocks mixed in quiet trade as global markets stabilise

Stock markets in the Gulf were mixed in quiet trade early Tuesday as global markets stabilised following the shock of Britain’s vote to leave the European Union (EU).

With oil prices rebounding, investors feel Brexit may have little impact on Gulf economies, although weakness in the pound and euro could affect Dubai’s real estate and tourism sectors. Brent oil was up 1.7 percent to $47.95 a barrel in Asian trade.

Ramadan and summer holidays are limiting activity, however, and deterring investors from taking large positions given the risk of more global market instability. Saudi Arabia’s market will be closed throughout next week for Eid al-Fitr.

The Saudi index was up 0.2 percent in the first 15 minutes of trade on Tuesday, largely because of second- or third-tier stocks favoured by local retail investors such as Tihama Advertising, up 4.6 percent.

Dubai’s index was flat, with activity also focusing on smaller stocks such as HITS Telecom, the most actively traded share. It was up 2.3 percent.

In Dubai, a 0.7 percent decline by Aldar Properties helped to pull the index down 0.3 percent, but most of the 10 most heavily traded stocks barely moved.

Qatar edged down 0.1 percent but Qatar National Bank , the Gulf’s largest listed lender, climbed 0.6 percent.

Source: Reuters