Arabian Gulf markets remain quiet amid oil’s return to $50 mark

22/08/2016 05:33 AST

Arabian Gulf shares began the week in quiet fashion on Sunday, with a return to US$50 oil proving little stimulus for investors.

Brent crude futures closed the week at above $50 per barrel despite drifting lower on Friday, ahead of Opec talks next month to discuss production levels.

Analysts are sceptical about the chances of such talks producing a cut in production, with further significant price gains unlikely in the short term.

"We see the upside as being limited from here and expect Brent crude will find resistance in the $50 to $52 [per barrel] area before correcting lower back into our preferred third-quarter range between $45 and $50 [ per barrel]," wrote Ole Hanson, the head of commodity strategy at Saxo Bank.

Saudi shares started the day positively, but the Tadawul index eventually gave up gains to end 0.2 per cent lower. This is despite the fact that on Thursday the kingdom’s Capital Market Authority approving regulations on allowing foreign investors to participate in initial public offerings from January. In Doha too, the Qatar Exchange fell 0.2 per cent.

The Dubai Financial Market General Index drifted lower on a day of thin trading, closing down 0.3 per cent at 3,559.70, with Emaar Properties, Dubai Islamic Bank and Dubai Investments closing lower.

Emaar Malls and DFM were the pick of a handful of gainers, rising around 0.7 per cent each. In the capital, the Abu Dhabi Securities Exchange General Index finished virtually unchanged at 4,519.29.

Etisalat rose 0.2 per cent to Dh19.80, while Dana Gas and Eshraq Properties fell by 1.3 and 1.7 per cent, respectively.

The National