GCC Market

GCC Stock Markets – A Tepid February

According to our recently released Monthly Market Review for the month of February, GCC equity market pulled back where S&P GCC index retreated back by 1%, after a fabulous January when it zoomed by nearly 7%. At country level, some continued their upward trajectory (UAE, Bahrain and Kuwait) while others (KSA, Qatar and Oman) pulled back from their earlier rally. Globally, equities continued the bullish rally in February as indicated by MSCI World index that increased by 2.8%, extending YTD...

Equities off to a flying start in 2019

According to our recently released Monthly Market Review for the month of January, GCC equity markets greeted its investors in celebratory fashion, recording its highest monthly gains in over two years. Investor sentiment was bullish, as the influx of foreign funds, uptick in oil prices and expansionary budget policies are all expected to support corporate earnings growth in 2019. The story was no different in the global markets, as equities continued to be the flavour of the month among investors....

Does Brexit pose an economic puzzle to the GCC?

This article originally published in AME Info. The UK’s vote to leave the European Union caused a period of uncertainty both in the financial markets and the political environment. The UK is the fifth largest economy in the world, and the Brexit process will have major economic repercussions. This led to countries and business entities strategizing their activities to respond to Brexit. The prospective cost to UK’s economy and impact of Brexit has brought into prominence its relation with the...

Oil on a Slippery Slope – Kuwait Stock Market Positive in November

According to our recently released Monthly Market Review for the month of November, GCC equity markets took a downturn due to the negative performance of the UAE and Saudi Arabian markets. Global equities saw a positive momentum buoyed by a strong recovery in the emerging markets. Kuwait was the best performing GCC market during the month, gaining 1.3% for the month of November. Kuwait finally broke out of its three-month losing streak and became the best performing market in the...

Kuwait and GCC Markets Give up some of the gains in August

According to our recently released Monthly Market Review for the month of August, the positive momentum that prevailed in the recent months among GCC indices has halted during the month as the investors booked their profits. Turmoil in Turkey and pull out of much and long awaited IPO of Saudi Aramco contributed to the negative sentiment. Kuwait all share index lost 0.7% for the month. Despite the losses registered in this month, Saudi Arabian and Kuwait indices’ returns for the...

Banking stocks propel the GCC markets

According to our recently released Monthly Market Review for the month of July, the second half of the year started on a good note for the stock markets of Kuwait and its regional peers, as they continue to yield positive results. Kuwait markets registered a positive performance for the month of July, as its All Share index gained 5.7%, propelling its YTD gains to 9.6%. Among Kuwait’s blue chip companies, Zain, Kuwait Financial House (KFH) and National Bank of Kuwait...

[Gulf Business] Alternative financing options for the GCC

The article originally appeared in Gulf Business. Traditional financing options, such as bank funding, continue to rule the roost in the Gulf region. Rising oil exports led to large government revenues, which usually ended up as deposits in the region’s banking system and constituted a significant source of low-cost funds. However, the current lower oil price environment and the resulting budgetary deficits have forced market participants to look at alternative sources of funding, such as private equity, venture capital, peer-to-peer...

GCC Markets Mixed, OPEC Deal Uncertain

Selling pressure created by Foreign Institutional Investors (FIIs) led to the fall in the Muscat index, while sharp fall seen in the Dubai index was attributed to profit booking, due to volatility in the international commodities and currency market. In terms of valuation, P/E of Morocco (18x), Qatar (14.3x) and Jordan (14.2x) markets were the premium markets in the MENA region, while the markets of Egypt (8.5x), Dubai (8.8x), and Oman (9.3x) were the discount markets. Blue Chips also had...

GCC Markets Fall Despite Oil Price Rise

Although the oil price rose by over 4 per cent, on the back of the OPEC agreement to limit crude output, Saudi index fell considerably after the Saudi government announced that it was reducing salaries and allowances for public sector employees. Many investors believe that additional austerity steps, such as new fees or taxes on the kingdom's large workforce of foreigners, could also be approved soon. Middle East fund managers have turned negative towards Saudi Arabian equities for the next...

Oil Price Rebound Fails to Cheer GCC Markets

Blue Chips were mixed in August with DP World and Ooredoo gaining 8.8 percent and 8.1 percent respectively. Four of the top five gainers were from Qatar, with Qatar National Bank and Industries Qatar share prices up by 7.5 percent and 6.1 percent respectively. Investors flooded their investments into Qatari large caps after the announcement of FTSE to include them into the emerging markets index on 24th August 2016. Saudi stocks were at the bottom, National commercial bank (NCB) and...