MIDEAST STOCKS-Oil prices to weigh on Gulf, positive corporate news may aid Qatar – Reuters


DUBAI, June 18 Low oil prices may dampen most
Gulf stock markets on Sunday but positive corporate news in
Qatar may help that bourse continue to recover moderately from
losses due to the economic sanctions against Doha.

Brent oil futures settled at $47.37 a barrel on
Friday – not a disastrous level for the Gulf, but one which
means governments may have less room to spend this year than
investors hoped just a few weeks ago.

“Oil prices above US$50/bbl are conducive to helping reforms
succeed while oil prices below US$40/bbl are likely to endanger
macro stability,” Bank of America Merrill Lynch said in a report
last week.

Qatar’s stock index rose 0.7 percent on Thursday,
gaining for two days straight for the first time since June 5,
when Arab states including Saudi Arabia cut diplomatic and trade
ties. The index is down 6.7 percent since that date.

There may be room for a further, moderate rebound after
state-owned Qatargas said at the weekend it had signed an
agreement with Shell for delivery of up to 1.1 million
tonnes of liquefied natural gas per year for five years – a sign
that Qatar’s core LNG business is operating largely as normal
despite the sanctions.

Also, the Qatar exchange said subscriptions to 3.3 million
Doha Bank shares, which had been unsubscribed in the
bank’s capital increase, had been completed.

In Dubai, Union Properties may attract some
interest after the company said it had entered an agreement with
Al Ramz Capital to provide liquidity for its shares. Al Ramz is
permitted to own up to 5 percent of the company’s shares under
the deal.
(Reporting by Andrew Torchia)

MIDEAST STOCKS-Oil prices to weigh on Gulf, positive corporate news may aid Qatar – Reuters}

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