Global market rally will buoy region's bourses

Abu Dhabi: Stock markets in the region are likely to get a boost this week from the confidence currently prevailing on the international markets that the world's economic growth will continue and Europe won't slide back into recession despite drastic spending cuts planned by the Eurozone governments to reduce their debt burden, market analysts told Gulf News Saturday.

"We might see a move upwards in the regional markets (this) week, which were oversold for a long time. However, the major trend in the market is still down," said Mousa Haddad, Head Trader with the National Bank of Abu Dhabi Asset Management.

He said in the near-term, the market index in Saudi Arabia may touch 6,340, while in Dubai, it may move up to 1,570 and in Abu Dhabi it may touch 2,580.

"The Saudi market index rose today. The markets in the UAE and Qatar are however, lagging behind. But if Europe can avoid a double dip recession and China's growth story continues, these markets can end the year on a positive note," said Fadi Al Said, Head of Equities, Middle East, ING Investment Management,

Al Said said the UAE markets need strong domestic catalysts, like good earnings reports of companies to woo investors. Higher share volumes and greater liquidity is what is needed to shore up the UAE markets, he added.

Market participants say due to lack of news on the Dubai Financial Market (DFM), it is taking its direction, based on cues from the international markets. They add the market is expected move sideways until the second quarter company results start coming in.