Capital Market

شهد مؤشر أسهم كويت 15 ارتفاعًا قياسيًا

Instead of analyzing the index we are going to  analyze performance on a stock level and measure the divergence from the recorded all-time highs (ATH) of the respective stocks since fundamentally sound stocks (good top and bottom line growth, sound management etc.) consistently establish new ATH’s reflecting growth and opportunities. While stagnant companies may struggle to re-conquer their ATH’s and can thus test investor patience (Japan for e.g.). Looking at Kuwait 15 Index constituents, the only positive news comes from...

Free-falling oil prices torment MENA markets

  MENA markets liquidity continued its momentum in November, with volume increasing by 20% and value traded by 7.7%, post the lulled market activity in the last quarter. With the exception of Oman and Jordan, other MENA markets witnessed rise in market liquidity, with Bahrain, Kuwait, and the UAE leading the charge. Bahrain showed the most improvement with value traded increasing by 268% and volume traded increasing by 167%, after being the worst hit in Oct’15.       SABIC (KSA)...

Reasons for poor Analyst Coverage in Kuwait

The present scenario Compared to all other stock exchanges in the GCC the number of large- and mid- cap stocks, as per the above definition, is much lower in Kuwait, than in peer countries, whereas the number of small-cap stocks is over 91% of the market. Qatar has the most even cap divide, while Kuwait sits at the other end of the spectrum. In terms of analyst coverage (as a percentage of all stocks in the exchange), Kuwait is the...

أسواق دول مجلس التعاون الخليجي – من الذي إستحدث القيمة على المدى المتوسط / الطويل؟

The main goal of an investor or a money manager is to create wealth - be it through capital appreciation strategy, dividend strategy or a capital preservation strategy. Unfortunately over the last 10 year period (2005-October 2015) all but Muscat stock exchange failed to create wealth for investors . That said, looking at the 5 year data, UAE and Qatar posted remarkable returns compared to its peers. Dubai and Abu Dhabi posted 16% and 11% five year CAGR respectively while...

ُشكل الإجراءات الضريبية مصدر قلق للأسواق

According to Marmore’s recently released Monthly Market Review, MENA markets ended mostly in red during the month of October 2015. Abu Dhabi (-4.0%) suffered the most, followed by Saudi Arabia (-3.8%), Dubai (-2.5%) and Bahrain (-2.0%). Despite the increase in oil prices during October, the lower-than-expected oil prices continue to strain the MENA markets. The regional markets are also responding to instability in the global economy and anticipated monetary tightening in response to low oil prices.  KSA is contemplating spending...

تداعيات الأزمة الصينية على اقتصادات وأسواق دول مجلس التعاون الخليجي

According to a report published by Marmore (Is China Stalling?), the ensuing volatility in global markets was exacerbated by fears of rapid economic slowdown in China - the largest economy in the world (PPP terms), which stoked fears of impending global recession and led to a massive sell-off. Figure 1: Black Monday (August 24, 2015) Source: Reuters China, which now accounts for almost 15% of global economic growth, was perceived as an important global growth driver. Economists opined Chinese growth...

التمويل الإسلامي: مجالات للابتكار

Islamic finance industry has evolved and grown considerably since its inception in a rudimentary form during 1960s. The focus of the Islamic finance industry during its initial stage of inception was to create customer awareness and product development. However, the increased recognition and awareness, along with high demand resulted in rapid growth in the value and transformation of the industry over the next few decades. The global Islamic finance industry realised $2.1tn of assets in 2014 and is gearing up...

متوسط التكلفة المرجح لرأس المال لدول مجلس التعاون الخليجي – مجموعة أدوات لممولي الشركات

Weighted Average Cost of Capital (WACC) assumes importance in corporate finance decision making. In the GCC, unlisted companies outnumber listed companies by miles and hence most of the deals involve unlisted companies in one way or other. Corporate finance professionals face twin problem while valuing an unlisted company. They have to estimate future cash flows and also estimate the appropriate “discount rate” at which these cash flows can be discounted to the present. Such a discount rate is nothing but...

أسواق الشرق الأوسط وشمال أفريقيا: ماذا حدث في يوليو؟

The blazing summer heat encouraged the yearly migration of GCC tourists to cooler locations. These past few years this “summer hibernation” has coincided with the holy month of Ramadan, which acts as a double whammy for stock markets in the region. And if that wasn’t enough, the lifting of Iran sanctions sent oil prices tumbling down, with IPE Brent falling 17.9% to USD 52 in July, and the sell-off in the Chinese markets had a pronounced impact in the region....

هل تستطيع الرياض منافسة دبي كمركز مالي؟

Dubai is a global business city located in the UAE with a population of 2.1 million and a GDP per capita based on PPP of USD 65,000. In contrast, Riyadh, the capital city of Saudi Arabia, boasts of a population of 6 million and a GDP per capita based on PPP of USD 54,000. Both Saudi Arabia and the UAE are oil rich countries. In order to reduce their dependency on oil revenue the two countries are diversifying into non-oil...