Regional markets look for cues from global events

Abu Dhabi: The region's stock markets are likely to continue to be in a risk-off mode until greater clarity emerges from Europe as to how it's going to deal with the Eurozone sovereign debt crisis which might see markets moving sideways with a downward bias in the week ahead, say analysts.

"The regional markets will remain firmly anchored to international developments. Several potential domestic catalysts are fully overshadowed by international developments," a Dubai-based broker told Gulf News. "The language from Germany in the context of how Greece situation is going to be dealt with, will be important in terms of the direction the regional markets are going to take."

Mousa Haddad, Head Trader with National Bank of Abu Dhabi, told Gulf News the investors in the regional markets remain cautious.

"However, we haven't seen massive selloffs — there are low volumes on the downside, which indicate that the people in the Middle East and North Africa region are not worried that much. The downward movements could reverse as soon as Europe finds a solution to its problems," he added.

On Thursday, Dubai's benchmark index fell 0.03 per cent to 1,479.67 as investors remained cautious about Greece and after some downbeat data releases in the Eurozone and China. The Abu Dhabi Securities Exchange's general index fell 0.44 per cent to close at 2,464.68, dragged down by real estate and banking sector stocks.