Inside Financial Markets

Gulf sentiment may remain down as oil extends Losses

Gulf stock markets may stay under pressure on Sunday after prices of oil extend losses, with no major corporate news to offset the negative background.

Crude oil dipped on Friday, plumbing multi-month lows and posting a sixth straight week of losses, as the approaching end of the U.S. summer driving season suggested a growing surplus in gasoline supply.

Brent settled down 91 cents, or 1.8 percent, at $48.61 a barrel. It was down 7 percent for the week and fell 23 percent over the past six weeks.

In global equities, Wall Street stocks ended down on Friday after the monthly U.S. employment data came close enough to forecast to stoke bets the Federal Reserve will raise interest rates for the first time in nearly a decade perhaps as early as September.

European shares fell 0.9 percent after data showed German exports and industrial output falling in June, a setback that underlined the need for central bank stimulus in the euro zone.

43+Manazel+Holding+CompanyIn the Gulf, the second-quarter earnings reporting season is largely over, with the exception of several companies in the United Arab Emirates, so there may be very few, if any, positive catalysts for the stock markets.

According to Riyadh-based Albilad Capital, the aggregate net profit of companies listed on the Saudi stock exchange tumbled 8 percent year-on-year in the second quarter.

[button color=”” size=”” type=”” target=”” link=””]”This decline was fuelled by a 32 percent decrease in the total profits of the petrochemical sector as petrochemical prices experienced… sharp declines matching the drop in oil prices to their lowest level in more than five years,”[/button] it said in a note.

In Egypt, Global Telecom may rise after it swung to a quarterly profit of $28 million, which compared with a loss of $175 million a year earlier.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The Canadian Securities Institute


CSI is part of Moody's Analytics Learning Solutions, which offers educational programs and credentials throughout the world.

Email Newsletter

Subscribe to receive inspiration, news, and ideas in your inbox.

Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)