Bounce in Oil Prices may lift Gulf Shares
A recovery in oil prices at the end of last week may lift stock markets in the Gulf on Sunday but second-quarter earnings from some of Dubai's second-tier companies may limit gains on that bourse.
Brent crude futures settled 2.0 percent higher at $46.97 at barrel on Friday after touching $47.05, the highest in more than three weeks. Saudi Arabia's index, which lagged its peers last week, may outperform on Sunday as investors buy oil-sensitive shares such as petrochemicals.
In Dubai, Shuaa Capital may see selling after it reported a second-quarter net loss of 50.8 million dirhams ($13.8 million), compared to a profit of 1.7 million dirhams in the same period of 2015. The loss was mainly due to provisions set as aside by Shuaa's business of lending to smaller firms.
DAMAC Properties reported a 37.4 percent fall in second-quarter net profit to 886.8 million dirhams ($241.4 million), but came ahead of EFG Hermes' forecast of 771 million dirhams.
Arabtec said it made a narrower loss in the second quarter, its seventh straight quarterly loss. The builder made a net loss attributable to equity holders of 186.4 million dirhams, compared with a loss of 718.4 million dirhams in the corresponding period of 2015. But the result fell short of EFG Hermes' forecast of a loss of 83.2 million dirhams.
(Reporting by Celine Aswad; Editing by Andrew Torchia)