Gulf markets tracking Saudi gains
Dubai, September 4, 2011
Gulf markets were seen rising on Sunday, tracking gains in Saudi Arabia a day earlier as trading resumed following a religious holiday.
Saudi Arabia's index rose 2.1 per cent on Saturday, its largest gain since March 26 as local investors bought stocks across the board on its first day's trading since the bourse closed for Eid al-Fitr.
'Saudi Arabia's move will help other Arab markets today,' says Haissam Arabi, chief executive and fund manager at Gulfmena Investments in Dubai.
'It's more of a tradition to see this type of move after Eid and we should something similar in other Gulf markets,' he remarked.
'With markets closing for about a week, people didn't want to take risks beforehand, so a lot of liquidity that has been sitting on the sidelines is looking to come back in,' he added.
Stocks on Wall Street and other major exchanges closed down more than 2 per cent on Friday after the US Labor Department said employers added no net new jobs last month and July's total was revised lower.
'If there's a rebound on global markets on Monday, strength in local markets could continue for a couple more days - it's not scientific, but seasonal,' added Arabi.-Reuters