Stronger oil prices may bolster Gulf stock markets on Sunday,
although a lack of other catalysts may limit potential gains.
Brent crude rose almost $3 to $65.56 a barrel on Friday
following a bigger than expected drop in U.S. oil rigs in operation and a
drawdown of U.S. inventories.
It ended up flat on the week, while for the month, it fell 2
percent and oil bears cautioned prices could fall again on the global supply
glut.
Pressure might
build this week if the dollar rallies and OPEC decides not to cut output. OPEC
officials will meet in Vienna on Friday, but so far most analysts expect the
cartel to keep its output unchanged.
Qatar investor sentiment, which was hurt last week by news
of high-profile arrests and criminal probes at world soccer body FIFA, may
improve after the country's World Cup organising committee defended its
successful 2022 World Cup bid and FIFA President Sepp Blatter secured
re-election for a fifth term.
But Ezdan Holding
may remain under pressure after tumbling its daily 10 percent limit on
Thursday. The stock had surged ahead of its inclusion in MSCI's emerging
markets index and investors started booking profits after passive funds
tracking that benchmark adjusted their positions at the end of last week.
In Saudi Arabia, a fresh bomb attack by the Islamic State
group may impact the mood of investors. An Islamist militant suicide bomber
disguised as a woman blew himself up outside a Shi'ite mosque in the eastern
city of Dammam on Friday, killing three other people. A week earlier, another
attack at a Shi'ite mosque killed 21 and wounded nearly 100 people.
Also, growth in bank lending to the private sector in the
kingdom slowed to an annual 9.5 percent in April, the lowest rate since
September 2011, central bank data showed on Thursday.
Global equity markets fell on Friday, as data showed the
U.S. economy contracted in the first quarter and as investors were unnerved by
mixed signals from Greece's debt talks.
Source:
reuters