Gulf stock market ‘sugar rush’ winds down as investors remain uneasy

Most Arabian Gulf bourses traded narrowly on Monday, with investors torn between betting on further gains following a sharp rebound a day earlier or booking some quick profits and this lack of conviction indicates the bear trend could persist.

Markets have tumbled to such an extent this year that many stocks are considered cheap by traders and fund managers, even after Sunday’s rally.

“Sunday’s sugar rush is winding down,” said a Dubai-based trader. “Daily traders turned a quick profit and cashed out and so the markets may continue to see-saw.”

Dubai’s index rose slightly, then slipped into negative territory before again edging higher. It was up 0.3 per cent at 10.41am.

Emaar Properties, which surged 8.0 per cent on Sunday, fell 0.2 per cent.

Arabtec, a stock favoured for speculative trade, fell 0.8 per cent, erasing some of previous day’s 10.0 per cent rise.

Abu Dhabi’s bourse slid at the market open before rising 0.2 per cent as of 11.06am. Etisalat was the main support, climbing 0.6 per cent.

In Qatar, the stock exchange gave back early-session gains to be down 0.7 per cent at 11.09am.

Qatar National Bank (QNB), Doha’s largest lender dropped 0.5 per cent.

Gulf International Services, an oil-related company, climbed 1.2 per cent, adding to the 9.9 per cent gains it made on Sunday.

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