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Gulf shares may consolidate in thin volumes

Asia shares

Gulf stock markets may consolidate on Tuesday with thin trading volumes preventing any extended rebound despite modest recoveries in oil prices and Asian bourses.

Brent futures have edged back up to $49.42 (£37.79) a barrel and MSCI’s broadest index of Asia-Pacific shares outside Japan is up 0.5 per cent, recouping around half of Monday’s loss.

But Mohammed Shammasi, chief investment officer at Riyadh-based Derayah Financial, said investors in regional bourses were “uninspired” and volumes were not expected to pick up until after the Eid al-Adha break in mid-September.

He added, “Investors have no motive to allocate capital in the markets, and unless there is a major event that will shock investors the markets are expected to stay trading in a narrow range”.

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Paul

The author Paul