Stock News: Gulf Stock Markets Mixed Early On After Oil Pulls Back

Most Gulf stock markets were mixed in early trade on Tuesday after oil prices pulled back overnight, adding a note of caution to an equities rally that was already slowing.

Dubai’s main index was down 0.4 per cent with trade focusing on real estate developers; Deyaar was up 2.6 per cent while the biggest developer, Emaar slipped 2.0 per cent.

Abu Dhabi’s market was flat while Kuwait edged down 0.3 per cent.

Qatar fell 1.0 per cent; Islamic Holding plunged its daily limit of 10 percent and major Islamic bank Masraf Al Rayan lost 2.1 per cent, but Barwa Real Estate climbed 2.4 per cent.

The stabilisation of oil prices was a major factor behind Gulf bourses’ recovery since late last week, but after jumping to almost $63 a barrel on Monday, Brent crude slid back to not much over $60 after Saudi Arabia’s oil minister said OPEC would not cut production at any price.

However, investors are still hoping for good news from Saudi Arabia’s 2015 budget, expected to be announced later this week after a special cabinet meeting.

The kingdom’s Al-Madina newspaper, quoting unnamed sources, said government spending was expected to be about SAR860 billion ($229 billion) next year, up from a record SAR855 billion in the 2014 budget plan – suggesting Riyadh sees no need to impose harsh austerity policies because of cheaper oil.

Projected 2015 revenues would drop to SAR715 billion from SAR855 billion in the 2014 plan, leaving a deficit of SAR145 billion that would be covered comfortably by Saudi Arabia’s huge fiscal reserves.