A positive tone in Saudi Arabia may continue supporting regional stock markets on Tuesday but weak oil prices look likely to limit any gains.
The Saudi stock index has risen for nine straight days, climbing 10.1 percent, after Riyadh’s huge international bond issue reduced jitters about the economy’s ability to cope with low oil prices and began to ease tight banking system liquidity. This has been positive for the entire region.
However, Brent oil fell nearly 1.5 per cent overnight to around US$48.85 a barrel because of indications of record Opec output, despite its attempts to secure a deal to limit production. Asian stocks are slightly higher.
In Dubai, the telecommunications operator du reported a third-quarter net profit of Dh457.2 million; that was at the high end of the forecasts of analysts.
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