GCC corporate earnings to take a hit from coronavirus outbreak – ZAWYA

GCC corporate earnings to take a hit from coronavirus outbreak – ZAWYA

"The second stage is its subsequent impact on real economy and corporate earnings/balance sheet that could be significantly negative," he added.. Stocks were also hammered by a historical plunge in oil prices as OPEC failed to strike a deal with its allies to cut the production of oil.. "We expect regional markets to continue to remain at a state of heightened volatility," Lee said.. "We are operating under the assumption that the GCC's stock markets have lost between two to three quarters of growth, depending on the sector," Franklin Templeton's Shamma said.. Last week, Saudi Arabia announced an additional 50 billion riyal ($13.3 billion) stimulus package to mitigate the economic fallout from the coronavirus on the private sector.. "While UAE stocks are not directly impacted by weak oil price mostly because of the mix of index constituents, UAE stocks could face a second order impact from a soft real estate environment, lower loan growth and higher cost of risk for the banking sector," Emirates NBD's Lee said..