Dubai: Quarterly earnings are likely to continue to dominate investor attention on Gulf bourses this week, with banks in the United Arab Emirates under focus ahead of third quarter numbers after Saudi lenders disappointed.
"The UAE banking sector will be in focus after negative surprises from Saudi banks during this reporting season," said Ajeev Gopinath, Associate Vice-President for Asset Management at Gulf Baader Capital Markets.
"Although the step up of provisioning aims at improving the coverage [of bad loans], indications that the provisioning cycle has not peaked yet worries the market about possible surprises in the coming quarter. Stabilising asset quality is however a positive."
Saudi shares closed at their lowest in six weeks yesterday, ahead of quarterly-earnings results from heavyweight Saudi Basic Industries Corp and after US oil prices posted their first weekly loss in four weeks.
Returning confidence
The all-share index ended down 1.2 per cent at 6,2278, its lowest since September 1 and making its sharpest one-day fall since August 23.
Signs of returning confidence in capital markets could also spill over into the equity markets, particularly in Dubai.
