Dubai: Oil prices are inching closer to $120 a barrel as markets fixate on whether there will be enough supply coming to feed demand. That, however, did not prevent nearly all the major Asian stock markets starting positive after yesterday’s heavy declines, with India’s Sensex up by nearly 100 points by 9.30am UAE time. The Shanghai index did slip into the red, albeit marginally by 4 points.
The DFM started out positive in the initial trading, while ADX slipped marginally. UAE and Gulf stock markets are likely to be in positive territory as investors keep looking at the oil prices - and what they are seeing is giving them a lot of cheer.
The Saudi index slipped into negative on Wednesday, but most market watchers reckon this to be a blip.
The UAE and Saudi stock markets are awaiting their next round of IPOs, with DEWA and Salik likely to be the first out of the gates. Multiple market analysts say that those IPO plans will remain on track and will unlikely be distracted overtly by the situation in Ukraine.
“If not IPOs, there is always the SPAC route as Shuaa showed with its latest listing,” said an analyst. (A SPAC – or special purpose acquisition company – achieves the same stock market listing that an IPO would do, but without many of the attendant processes.)
Keep hopes up?
The Russia-Ukraine conflict keeps playing out, with reports coming more frequently on the rising cost in terms of fatalities. The two sides are still in talks to try and work a solution that will end the hostilities.
“There is mild hope that talks between the Ukrainian and Russian delegates can make some headway - but I wouldn't go as far as to say there's optimism,” said Craig Erlam, Senior Market Analyst at Oanda. “The gulf between the demands of the two countries is enormous.”Source: