DUBAI, Oct 4 (Reuters) - Middle East stock markets look set to consolidate in quiet trade on Sunday with very few domestic catalysts and a mixed global backdrop.
Brent oil
Modest trading volumes in the Gulf over the last week show many investors remain reluctant to take big positions because of factors such as the weak outlook for oil prices, uncertainty over the level of government spending and the war in Yemen.
In Qatar, the central bank sold only half the amount of Treasury bills which it originally planned on Thursday. Although the central bank governor then released a statement insisting that demand for the bills remained strong, commercial bankers said the scaled-back debt sale was a sign of liquidity tightening in Gulf banking systems because of cheap oil.
This will not necessarily hurt banks' profits, which could actually benefit if market rates rise, but it could in the long run slow economic growth and reduce liquidity available for equities investment.
Dubai's stock index
(Reporting by Andrew Torchia; editing by Matt Smith) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
Keywords: STOCKS MIDEAST/