Kuwait’s stock market snapped a five-session losing streak after the cabinet resigned, and Saudi Arabia’s market made some marginal gains as oil prices recovered, but most other Gulf markets slipped yesterday.
Egypt’s bourse continued to rally after the Muslim Brotherhood’s Mohamed Mursi was named as the country’s first freely elected president on Sunday. The index added nearly 3% after surging 7% on Monday.
In Kuwait, some parliamentarians believe the government’s resignation could be a first step out of the latest crisis that has stalled legislation and blocked reforms in the major oil producer.
In response, Kuwait’s index rose 0.6% on Tuesday, recovering from the previous session’s five-month low.
“If the parliament is void and the cabinet resigns, the market reacts positively because all the regulations are suspended,” said Talal Hunaif, senior investment analyst at Coast Investment and Development Company. “The private sector benefits because there are no more delays from the parliament analysing potential contracts between the companies and ministries.”
In Saudi Arabia, shares made a late-session recovery after losing gains from early trade as investors picked up bargains.
The index ended 0.2% higher, snapping a three-day losing streak, but is bound within a tight range since early June.
Petrochemical stocks provided the main support to the market, with the sector’s index adding 0.7%.
Investor sentiment however remains tied to international markets as concerns of a slowdown in global demand growth and Europe’s spiralling debt crisis take centre stage.
Elsewhere, markets in the UAE slipped as investors continued to reduce positions ahead of the traditionally slow summer months.
Dubai’s index shed 0.1% to close at 1,455 points, its fifth straight loss. Bellwether Emaar Properties and Dubai Financial Market lost over 1% each.
Abu Dhabi’s Aldar Properties and Sorouh Real Estate dropped 0.9 and 1% respectively, weighing on the index which slipped 0.2%.
Elsewhere in the Gulf, Oman’s index fell 0.1% to 5,657 points, while Bahrain’s measure rose 0.4% to 1,129 points.
from gulf times.