October 2, 2017 / 5:38 AM / a year ago

MIDEAST STOCKS-Little upside for Gulf, Dubai shaky technically

DUBAI, Oct 2 (Reuters) - Stock markets in the Gulf may have little upside on Monday because of a lack of fresh, positive news, while Dubai risks turning technically bearish.

The Dubai index fell 0.5 percent to 3,545 points on Sunday, dropping below technical support on the August low of 3,560 points; a second straight close below that level would confirm a break, triggering a minor double top formed by the August and September peaks and pointing down to around 3,440 points. Gulf markets have in general been dampened by the approach of third-quarter earnings announcements in late October. Because of slow economic growth and austerity policies - and in Qatar’s case, the impact of sanctions by neighbouring states - earnings may be mediocre, so stocks may not be bought actively until uncertainty over earnings has eased.

Egypt looks set to outperform the Middle Eastern region after its index added 0.6 percent on Sunday, rising above the July peak to an all-time high. The index gained momentum last week as it started to price in a reversal of tight monetary policy.

The global market environment is neutral, with Brent oil down at $56.53 a barrel and MSCI’s broadest index of Asia-Pacific shares outside Japan marginally higher. (Reporting by Andrew Torchia)

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