Palm oil declines to lowest level in six weeks

The region's stock markets are likely to be volatile in the week ahead despite the nervousness surrounding a potential sovereign default by Greece being calmed with Germany's support, for now. However, global investors may need further reassurance amid slowing economic growth to hold on to their stocks, say analysts. "The regional markets will be choppy in the week ahead, though the markets in Abu Dhabi, Dubai and Qatar may see some more upsides," Mousa Haddad, Head Trader with National Bank of Abu Dhabi Asset Management told Gulf News. "If there's profit-taking, it will be an opportunity to buy in these markets." He also said Saudi Arabia's may come under selling pressure due to weakening global oil prices and a slowing US economy. Haddad also said the possibility of four or five Abu Dhabi and Dubai-listed stocks being included on MSCI's emerging markets index may spur a short-term rally on the two markets. Gary Dugan, Chief Investment Officer Private Banking at Emirates NBD wrote in a research note the Middle East and North Africa (Mena) region has so far managed to avoid the worst elements of the sell-off in markets. "Equity markets have largely held their levels the DFM general index has had a flat performance over the past few weeks and the Tadawul All Share index is down only marginally. Bond markets have also performed well and are likely to receive ongoing support from more international interest in view of the yield premiums available," said Dugan. "The Mena market would be more challenged if the oil price started to fall, not due higher Opec [Organisation of Petroleum Exporting Countries] output, but because global growth fell back sharply. Although we are still somewhat concerned about the outlook for global growth, we do not see the kind of precipitous setback that would lead to a sharp setback in Mena markets," he added. From / Gulf News