Dubai: Trading in Middle East markets was mixed yesterday as crude oil prices stayed above $91 a barrel but investor sentiment remained muted with poor liquidity.
"Data in recent weeks has been supportive of the stocks and commodities markets globally. The US will avoid a double-dip. The Asian region, including Japan, looks a little bit better, with its industrial production finally showing an increase," said David Cohen, director of Asian Economic Forecasting at Action Economics.
"I think a lot of people are expecting (oil) prices to turn higher towards $100 a barrel next year."
The situation is favourable for Qatar and Saudi Arabia, he added.
"Funds are flowing out to Qatar and Saudi Arabia as foreign investors prefer these markets now."
Gold producer Saudi Arabian Mining Co's (Maaden) chairman said on Monday the company will boost exploration in the vast Arabian Shield region and develop new mines in a bid to double gold resources to 20 million ounces by 2020.
Banking stocks lead a rally in Saudi Arabia yesterday, covering some of the losses that followed lower-than-expected third-quarter earnings, helping lift the kingdom's index. Al Rajhi Bank gained 1.8 per cent and Samba Financial Group rose 0.4 per cent.
"Banking is the only sector that has lost ground in the last few months," said Saleh Al Onazi, vice president of principal investment at Swicorp in Riyadh.
"We are probably seeing some adjustment before the end of the year."
The index edged higher by 0.6 per cent to 6,625.
Qatar's index advanced in early trade, reversing losses from a drop on Monday, but trading volumes are low as investors remain on the sidelines.
Industries Qatar (IQ) rose 0.2 per cent and lender Masraf Al Rayan added 0.5 per cent.
Qatar Electricity and Water gained 2.6 per cent as the index rose 0.2 per cent.
