DUBAI, Nov 21 (Reuters) - Oil-sensitive shares in the Gulf may get a boost from firmer crude oil on Monday while shares favoured by foreign funds in Dubai and Qatar may come under selling pressure as emerging markets made a shaky start to the week.
Commodity traders said that markets were being supported by advancing plans by the Organization of the Petroleum Exporting Countries (OPEC) to cut production and Brent futures climbed a little over $47.50 a barrel, up about 9 percent from last week's low of $43.57 a barrel.
Saudi Arabia's petrochemical sector , which makes up roughly a quarter of the total stock market capitalisation, may be one of the main beneficiaries, although some shares are now trading at or near their expected fair value.
But the general market index , last at 6,571 points, which has climbed 16.3 percent over the last 4 weeks, has been falling over the last two sessions, pulling away from technical resistance on the July peak of 6,703 points as investors booked profits on lofty prices. On Sunday, none of the listed banks gained.
Some investors may however take it as a positive sign that National Commercial Bank , the largest commercial bank, cut its quote for three-month money in the interbank market on Sunday in a signal that rates could fall further as a liquidity crunch in the banking system eases.
But Gulf stock markets that are more susceptible to foreign fund flows such as Dubai's index and Qatar's index are likely to be dented by the skittish trading behaviour in Asian trading as investors decipher what a Donald Trump U.S presidency would do to fund flows to those markets.
MSCI's broadest dollar-based index of Asia-Pacific shares outside Japan dipped 0.1 percent on Monday morning, staying near four-month lows.
(Reporting by Celine Aswad; Editing by Biju Dwarakanath) ((celine.aswad@thomsonreuters.com)(+9715 6224 7653))
Commodity traders said that markets were being supported by advancing plans by the Organization of the Petroleum Exporting Countries (OPEC) to cut production and Brent futures
Saudi Arabia's petrochemical sector
But the general market index
Some investors may however take it as a positive sign that National Commercial Bank
But Gulf stock markets that are more susceptible to foreign fund flows such as Dubai's index
MSCI's broadest dollar-based index of Asia-Pacific shares outside Japan
(Reporting by Celine Aswad; Editing by Biju Dwarakanath) ((celine.aswad@thomsonreuters.com)(+9715 6224 7653))