Gulf stock markets may trade in a narrow range Monday as Asian share prices are flat and oil prices are staying near 11-week lows, with Brent crude at $45.70 per barrel.
In Saudi Arabia, most blue chips have reported quarterly earnings, and only a few small and mid-cap stocks have posted second-quarter results since the market close on Sunday.
These have been mixed. Saudi United Cooperative Insurance swung to a net profit before tax of 30.6 million riyals ($8.16 million) from a loss of 40.4 million riyals in the corresponding quarter of 2015.
But Southern Province Cement reported its second-quarter profit edged down 0.7 percent to 268 million riyals. Analysts at Saudi Fransi Capital recommend a “hold” on the stock with a target price of 82.00 riyals; it was last at 72.25 riyals.
“We expect a very calm trading day, with some traders booking profits and cashing out to have money on hand until they assess this season’s quarterly results,” said a Dubai-based trader.
The index in Dubai, where major real estate companies have not yet reported earnings, saw profit-taking on Sunday with Emaar Properties retreating 2.1 percent to 6.85 dirhams, pulling back from major technical resistance on its October peak of 7.01 dirhams.
Kuwait’s Gulf Bank may attract interest after reporting a 34.4 percent rise in second-quarter net profit to 11.93 million dinars; Arqaam Capital had forecast 8 million dinars.
Source: Reuters
