MIDEAST STOCKS-Markets may weaken after fresh oil price plunge – Reuters


DUBAI Feb 10 Stock markets in the Gulf may
weaken further on Wednesday after oil prices plunged 8 percent
overnight on a gloomy outlook for U.S. and global demand.

Brent crude has recovered modestly in early Asian
trading on Wednesday, but at just above $31 a barrel it is still
uncomfortably low for Gulf stock markets, which have been
closely correlated to oil in the last couple of months. Asian
stocks are slightly lower.

The Saudi stock index, which last closed at 5,874
points, has minor technical support at the early February low of
5,834 points; any break would trigger a minor double top formed
by the end-January and February highs and pointing down to about
5,600 points.

United Arab Emirates markets have been outperforming the
region because the UAE economy is seen as more diversified and
able to withstand a prolonged period of low oil prices.

Nevertheless, Dubai’s index, last at 3,065 points,
faces technical resistance at its December peak of 3,189 points
and a break may not happen without stronger signs that oil has
bottomed.

Egypt’s index, last at 6,004 points, broke on
Tuesday before its minor uptrend line from mid-January,
suggesting the rally of the last few weeks has ended for now.

(Reporting by Andrew Torchia)

MIDEAST STOCKS-Markets may weaken after fresh oil price plunge – Reuters}

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