Gulf markets recorded record highs that may push them to achieve billions of gains during the sessions earlier this week, thanks to the decisions of the G20 summit that ended last Saturday, during which a trade truce was reached between the United States of America and China, and the ban on the Chinese company "Huawei" was lifted, in addition to the Saudi-Russian agreement to extend the agreement to reduce oil production.
The Gulf stock exchanges witnessed a strong interaction in light of the calm geopolitical atmosphere in the Gulf region, and the tendency of some portfolios to buy major stocks, ahead of the announcement of the mid-term results, during the Sunday and Monday sessions at the beginning of this week, the green color dominated the Gulf stock exchanges, especially the Dubai market index, which rose by 1.8%, followed by the Saudi index by 1%.
A number of analysts believe that the Gulf stock exchanges are ready to make more gains during this week's sessions, thanks to the improvement in investor sentiment due to the truce reached by Washington and Beijing, and its positive impact on global financial markets, especially the US markets.
Raed Diab, vice president of investment research at KAMCO, said the trade truce agreed by the world's two largest economies, if completed, would be the biggest stimulus for global and Gulf markets, and would lead to increased gains over the next month.
He added that investors are currently waiting for the approaching season to announce the results of companies for the first half of this year, and geopolitical developments in the Gulf region, especially what is going on between the United States and Iran.
For his part, Mohammed Al-Maimuni, an economic analyst, said that the success of the Saudi market in maintaining good technical performance so far keeps the chances of reaching the level of 9,000 points amid investors' anticipation of the season of announcing the results, which is expected to be better than before.
It is noteworthy that the season for revealing the results of companies for the first half of this year began earlier this week, and is scheduled to end in late August 2019, during which time the market may be exposed to strong fluctuations, and disclosures are often concentrated at the end of the publication deadline.
Capital Markets Technical Advisor Mohammed Al-Shamimri said that the decision to include the Saudi market on the MSCI Emerging Markets Index will contribute to attracting more than $13 billion of passive funds to the Saudi market this year.