Regional markets likely to remain buoyant

Dubai may continue rising if it looks set to break important technical resistance

Shares in Dubai are trading at their highest level since April. Ali Haider / EPA
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Arabian Gulf stock markets look set to consolidate on Monday in the absence of fresh news, although Dubai may continue rising if it looks likely to break important technical resistance.

The international market environment is modestly positive, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4 per cent and Brent oil up 0.3 per cent to US$49.03 a barrel.

On Sunday, the Dubai index gained 1 per cent in modest trading volume to close on its April peak of 3,573 points. Any clean break of that resistance (two straight daily closes) would point up in coming weeks or months to strong resistance at 3,737-9 points, the January and February peaks.

Moderately positive second-quarter earnings at Mashreq bank may support the market; net profit attributable to shareholders rose to Dh557.4 million from Dh539.4m a year ago.

The market may also welcome the appointment of Ahmed Yousef Abdulla Hussain Khouri as the chief executive of Union Properties , which may end a period of uncertainty about the company's strategy and board control of it.