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June 22, 2017
Dual-Class Share structure: Answer to family business listing
Dual Class Share (DCS) structure is a governance structure that provides certain shareholders with voting power or other related rights that is disproportionate to their shareholding. Typically, one share provides one vote; in case of dual class share structure, one class of shares offer one vote, while shares in another class could carry multiple voting rights or absolutely no voting rights. For example, Alphabet Inc. (parent company of Google) has different class of shares: class A ordinary shares that is...
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May 17, 2017
Visualizing Saudi Arabia in MSCI EM – Some Questions
When is the inclusion likely to happen: 2018/2019/2020? What will be Saudi Arabia’s weight in the index? And How much fund flows can be expect post inclusion? When is the inclusion likely to happen: 2018/2019/2020? MSCI has lauded the progress in Saudi Arabian capital market ushering its entry into the emerging markets. The kingdom will be third in the GCC league after UAE and Qatar that were included in the index in 2014. Thanks to plethora of reforms implemented by...
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May 7, 2017
GCC bond market story-Just beginning to unfold
While the GCC equity markets came into prominence in the early part of the millennium the bond market took a back seat, primarily due to the lack of urgency to raise funds, ample liquidity in the system at low cost and certain cultural taboos. Family run organisations which control the majority of the economy were reluctant to expose their books to outsiders and sovereigns never had a dearth of capital. The data collated by Marmore clearly indicates an uptrend in...
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May 3, 2017
MENA markets tumble in line with oil
Value traded and volumes in March reflected a mixed market mood, with volume traded, dropping by 22% while the turnover in the market increased by 34.6%. All MENA markets, barring Saudi Arabia and Dubai, witnessed increase in turnover in March. Dubai and Abu Dhabi witnessed the maximum fall in liquidity with volume declining by 41% and 40% respectively. In terms of valuation, P/E of Morocco (19.18x), Kuwait (16.2x), and Qatar (15.06x) markets were at premium, 8while the markets of Dubai...
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April 5, 2017
MENA Markets Mixed, Oil Retreats
The month witnessed the volume traded hitting the reds with a negative growth of 22%, in contrast with a hike of 34.6% in the market turnover, indicating a mixed market mood. All MENA markets witnessed an increased turnover in March, leaving behind Saudi Arabia and Dubai to battle a negative market environment. Dubai and Abu Dhabi hit the lows in liquidity, with volumes spiraling down by 41 and 40%, respectively. Drawing the limelight on valuation, the market witnessed the P/E...
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March 26, 2017
GCC corporate earnings awaits a turnaround in 2017
Effect of lower oil prices and their impact on non-oil sectors was evident in the earnings performance of H2, 2016. Key sectors such as banking, telecom, real estate and construction all witnessed a fall in earnings. Banking and Telecom sector’s earnings declined by 7% and 29% during H2 2016 on a YoY basis. Poor performance of the former was due to tight credit and weak economic conditions, while the latter suffered from subdued performance of foreign subsidiaries, increased regulatory costs...
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March 5, 2017
Flat MENA, Positive World
According to Marmore’s recently released Monthly Market Review, most MENA bourses rebounded from a positive start to 2017, to close the month of February in the red. Bahrain, Jordan and Qatar were the exceptions, with the respective indices closing the month at 3.5%, 2.2% and 1%. Egypt, Morocco and Saudi Arabia were the laggards in February, falling by 4.8%, 2.5% and 1.8%, respectively. Kuwaiti Price and Weighted indices also fell by 0.7% and 0.8%, respectively. Profit taking dragged stock markets...
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February 8, 2017
Kuwait Price Index up by 19% in Jan 2017
According to Marmore’s recently released Monthly Market Review, MENA bourses had a positive start to the year 2017, with nearly all markets ending the first month in green. Kuwaiti Price and Weighted indices led the charge, rising by 18.9% and 12.4%, respectively, followed by Bahrain (6.8%). Saudi Arabia and Oman were the only markets to register a fall in January, falling by 1.5% and 0.1%, respectively. Various reasons are being touted for the 14-day consecutive rally in the Kuwait bourses,...
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January 31, 2017
Neutral outlook for GCC stock markets
According to Kuwait Financial Centre “Markaz” report on GCC stock & debt market outlook 2017, Boursa Kuwait has started this year on an explosive note. The much followed price index gained 16% while the weighted index gained by 11% as compared to 1.4% for MSCI GCC index and a negative 2.7% for Saudi Arabia. This has been among one of the sharpest rallies for Kuwait main index in recent years as the index posted positive gains for the fourteenth consecutive...
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January 5, 2017
MENA Markets end 2016 on a positive note
According to Marmore’s recently released Monthly Market Review, MENA bourses had a positive month in December, with all markets ending the year in green. Morocco’s Casablanca Index led the charge rising 9.1 per cent, followed by Egypt’s HRMS index (7.2 per cent). Kuwait weighted and price indices had a positive month, with both climbing 3.5 per cent, amid a spurt in speculative trading ahead of the year-end. The Egyptian Index also registered the highest gains in the year, closing nearly...