US econ data seen supporting Gulf sentiment
Gulf markets are likely to be muted ahead of a weekend that promises to spell disappointment as European leaders meet, but gains in global shares on upbeat economic data from the US may support sentiment on Thursday.
Asian shares rose on Thursday on encouraging US economic data, which showed demand for long-lasting US manufactured goods rebounded more than expected in May, a gauge of planned business spending increased and pending home sales rose in May.
Investors however are tense ahead of a European Union summit deeply divided on how to tackle the protracted euro zone debt crisis and stop it spreading further.
Investors in Kuwait are unlikely to be moved however, as political uncertainty remains in the OPEC member state.
The emir reinstated the old parliament last week after dissolving the one elected earlier this year amid bickering with the government over corruption allegations that had held up economic reforms and economic development.
Kuwait's index, which slumped to a five-month low on Monday, has since stemmed its decline.
"The market is embedded in political instability more than the rest of the region, but there are good signs we might have some institutional investors come in today or a realignment of existing funds may happen, which will help the market move forward," Darwish adds.
In Oman, Renaissance Services plans to raise US$112.2m through a mandatory convertible bond sale, the company said on Wednesday.
Renaissance, a service provider to the oil and gas industry, plans to issue 423m bonds, convertible at a price of OMR0.102 (US$0.26) each as part of the sale.
Saudi Arabia's bourse fell to a five-month low on Wednesday on jitters about political uncertainty in the region, including Syria, and most other Gulf markets also closed lower.
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