Regional markets to be bearish

Abu Dhabi: Civilian unrest in Egypt will likely see the regional markets under selling pressure in the week ahead, but the markets in Saudi Arabia and Qatar are set for gains on the back of surging international oil prices and the bull-run generated by the award of the 2022 Football World Cup to Qatar, say market experts.

"Saudi Arabia and Qatar will probably lead the regional markets in the week ahead. Qatar's government is increasing its stake in the banking sector. As long as the oil prices remain above $90 a barrel, these markets will continue to perform better," Alfred Fayek, Managing Director Sales Trading (Mena Region) at EFG-Hermes told Gulf News.

"The UAE markets, however, won't go too far as there's a lack of news and no one is expecting any surprises," said Fayek.

Another market analyst based in Dubai said the Saudi and Qatar markets are going to outperform other regional markets.

Support level

"The Dubai market, however, will remain close to its support level, while the market in Abu Dhabi will be driven by Aldar [Properties]," he added.

On Thursday, the Dubai Financial Market (DFM) index ended 0.94 per cent lower at 1,612.63. while in Abu Dhabi, the Abu Dhabi Securities Exchange (ADX) general index closed 0.36 per cent weaker at 2,659.04.

Last week, stocks worldwide plunged the most since November, crude oil posted the biggest jump since 2009 and the dollar rose versus the euro after protesters posed the biggest challenge to Egyptian President Hosni Mubarak's 30-year rule.

US stocks slid, preventing the longest stretch of weekly gains for the Dow Jones Industrial Average since 1995, as unrest in Egypt triggered the biggest one-day drop since November. The Dow lost 48.14 points, or 0.4 per cent, to 11,823.70 last week, after twice rising above 12,000 for the first time since 2008. The Standard and Poor's 500 Index fell 0.6 per cent to 1,276.34.

US growth

European stocks too, retreated last week as escalating protests in Egypt and an unexpected drop in the UK's gross domestic product offset accelerating US economic growth in the fourth quarter.

However, Asian stocks rose for the sixth time since mid-December as higher corporate earnings countered Standard & Poor's cut in Japan's credit rating and concern that Chinese policymakers will tighten monetary policy.