World Economy

(P)GCC Bourses Weaken

(P)GCC Bourses Weaken(P)GCC Bourses Weaken

Bourses in the (Persian) Gulf Cooperation Council Arab states weakened on Monday as oil prices dipped and global event risks keep investors away from riskier assets for now, Reuters reported. Brent contracts fell 0.6% to $49.03 a barrel in Asian trade as a strong dollar weighed on markets. Although the top two bourses in the United Arab Emirates have been making some gains, the momentum has been subdued, as volumes shrink ahead of the Islamic holy month of Ramadan, where activity tends to soften. Dubai’s index, last at 3,360 points, faces resistance at its 50-day moving average of 3,382 points. But Saudi Arabia’s index, currently at 6,428 points, faces some further declines as traders book profits in recent outperformers which have been driven by last month’s government announcement of reform plans to diversify the economy away from its oil dependency. If the index breaks below the support level at 6,400 points, it could trigger further declines.