DUBAI: Gulf stock markets look set to consolidate in quiet trade on Sunday with few new incentives to trigger buying, after Brent oil recovered most of its intra-day losses on Friday to close above $40 a barrel.
Dubai’s stock index, last at 3,319 points, has technical support on the mid-March low of 3,253 points; any break of the support would trigger a minor double top formed by this month’s highs, pointing to a deeper pull-back.
Kuwait Food Co (Americana) may attract interest after its board recommended a cash dividend of 0.1 dinar per share for 2015 and dividends in kind of 0.133 dinar per share. This compared to a payout of 0.090 dinar for 2014. However, the company also posted a 14.8 percent fall in its fourth-quarter net profit, citing rising costs and declining investment income.
Egypt’s index rose on Wednesday and Thursday last week on hopes that a reshuffled cabinet would boost the economy, but that optimism may fade this week.
Central Bank Governor Tarek Amer said on Saturday that U.S. dollar-denominated “Belady” certificates offered by the three largest state-owned banks in recent weeks to Egyptians abroad, in a bid to persuade them to invest their dollar savings in their home country, had seen a very low turnout.
He also said he had pumped $22 billion into the banking system to clear goods piled at ports, but did not give details of where he was obtaining this money or how he would resolve Egypt’s long-term currency shortage.