Regional Equity Markets To Remain Under Pressure

Regional Equity Markets To Remain Under Pressure

Global equity markets performed positively during the week as investors were encouraged by the progress and continued support from the Central Banks.. The US Fed announcing a USD 2.3 trillion package to support market liquidity and keep credit flowing and lower oil prices also boosted sentiments during the week.. For the region, equity markets reflected the sentiment in the global equities, to close on a positive note.. For the week, 5 out of the 7 regional indexes closed in green while 2 closed in red.. Bahrain and Kuwait closed in red as they were down by 2.21% and 1.31%, respectively.. Given that global economies are expected to witness meaningful slowdown , at least in Q1 and Q2 2020, investors should remain cautious and wait for flattening of the infection curve in the US and other major economies.. Although, the Q1 2020 earnings are expected to be announced in the coming weeks, they might not reflect the full impact of the pandemic.. It might be prudent to endure the uncertainty and focus on quality stocks with strong balance sheet and ability to seize on opportunities arising from the pandemic.. For the region, equity markets would continue to remain under pressure