Stock Markets

Home bias among GCC Funds – Preference for Domestic Stocks in Regional Funds

Institutional constraints such as barriers to invest across boundaries, limitations on repatriation of investment income, varying corporate governance standards, higher transaction costs and currency risk have been put forth as possible reasons. Interestingly, closer to home regional mutual funds in GCC markets suffer from home bias as well, despite the region being largely homogenous and frictional costs to invest across the region are largely non-existent. The primary goal of a fund manager is to maximize returns while minimizing risk. However,...

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...

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...

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...

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...

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,...

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...

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...