STOCKS NEWS MIDEAST-Gulf to move sideways; Egypt may continue pull-back

0535 GMT - Gulf stock markets appear set to move sideways on Monday, while a pull-back in Egypt may be extended as investors there take profits on big gains over the past few months.

Although most Gulf markets, especially Saudi Arabia, remain technically longer-term bullish, falling 14-day momentum and moderate trading volumes in recent days suggest investors are at present not in the mood to buy aggressively.

A possible exception is Oman, which rose for a ninth straight day on Sunday - although the uptrend is slow, with gains for that period totalling 1.7 percent.

In Abu Dhabi, investment firm Waha Capital may attract interest after reporting a near fourfold increase in its third-quarter profit as income from its portfolio companies increased sharply.

However, the earnings growth is in line with increases during previous quarters and the stock, last at 1.58 dirhams, rose in the past week in anticipation of the earnings, bringing year-to-date gains to 187 percent. So room for further rises is likely to be limited in the short term.

Egypt's bourse fell 0.9 percent on Sunday in what traders said could be the start of an extended period of profit-taking after strong gains since the ouster of former president Mohamed Mursi; the index, which last closed at 6,356 points, is up 42 percent from its late June low.

Fourteen-day momentum has dropped to its lowest level since early October, implying scope for a short-term pull-back. Immediate technical support lies around 6,200 points, which was a ceiling in late October.

The global market backdrop is mixed, with Asian shares down slightly but oil prices firm. (Reporting by Andrew Torchia; Editing by Olzhas Auyezov)

Loading...

Friend's Activity