* All bourses except Qatar in the red
* Oil price decline leads to profit-taking
* But markets may bounce back
* Dubai capped by chart resistance ahead of Expo
* Egypt posts biggest decline since Oct. 28
By Olzhas Auyezov
DUBAI, Nov 25 Most Gulf bourses fell on Monday
as oil markets reacted to the breakthrough nuclear deal between
Iran and world powers, which caused the price of Brent crude to
slip 1.8 percent.
The deal is not intended to let more of Iran's oil into the
market, the White House said, but an easing of the ban on
European shipping insurance may help smooth crude exports to
Iran's big Asian customers.
Gulf oil exporters, Saudi Arabia in particular, have
profited from tightness in the oil market caused by the
sanctions against Iran. So fears of a supply increase from Iran
triggered profit-taking in regional stock markets, said Marwan
Shurrab, fund manager and head of trading at Vision Investments.
"The expectations of higher oil prices going forwards will
be muted," he said.
The indexes in Saudi Arabia and Kuwait both
fell 0.5 percent; all Gulf markets dropped except Qatar.
Some analysts, however, believe the stock markets have
overreacted and could bounce back soon.
"I think it was just a knee-jerk reaction that was not
based on any fundamentals," said John Sfakianakis, chief
investment strategist at Saudi investment firm MASIC.
The deal with Iran only marked the beginning of a long
process and there is no immediate threat of increased supply, he
noted. Even if Iranian oil does come back to the market in large
quantities, it will not necessarily cause a steep enough fall in
prices to damage the big Gulf economies, other analysts said.
"I think the markets will reassess the situation in the
coming days, if not tomorrow," Sfakianakis said.
Qatar was buoyed by strength in Vodafone Qatar,
which jumped 5.6 percent. The main index edged up 0.2
Egypt's index posted its biggest daily loss since
Oct. 28, falling 1.2 percent and continuing a decline triggered
by a series of deadly political clashes last week.
Late on Sunday, the army-backed government passed a law
making it illegal to hold demonstrations without the approval of
the police and banning protests in places of worship, a move
rights groups condemned as a blow to political freedom.
In another move that caused unease, the Cairo government on
Monday suspended rice exports, less than a week after issuing
licences to sell the grain abroad.
Meanwhile, Dubai's index declined 0.3 percent as it
continued to trade in a narrow band just below the major
resistance level of 2,900 points days ahead of the Nov. 27
decision on whether it will host the Expo 2020 world fair.
The emirate hopes that by winning its bid, it will be able
to boost economic growth and solidify its status as a regional
hub for trade, logistics, travel and tourism.
* The index fell 0.5 percent to 8,347 points.
* The index rose 0.2 percent to 10,341 points.
* The index fell 1.2 percent to 6,356 points.
* The index fell 0.3 percent to 2,869 points.
* The index slipped 0.2 percent to 3,815 points.
* The index fell 0.3 percent to 1,194 points.
* The index slid 0.2 percent to 6,752 points.
* The index fell 0.5 percent to 7,837 points.