The region's stock markets are expected to come under selling pressure in the week ahead following negative investor sentiment which currently prevails on international markets due to sovereign debt default concerns in Europe and a slowing US economy, market experts say.
"There's likely to be a spill-over of negative sentiments into our regional markets from the international financial markets," said a Dubai-based market analyst.
He said the ramifications of what's happening in the US and Europe will be felt in the region too, with Saudi Arabia's market being the best indicator of a flagging investor confidence in the regional markets. This is following a sharp drop in global oil prices over the past month. The mainstay of the region's economies are crude oil exports. It's estimated stock markets in the Gulf Cooperation Council lost a total of $12.2 billion (Dh44.7 billion) in May to bring the market value of companies listed on them to $757.9 billion as political tensions and light liquidity prompted a sell-off.
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