GCC Market Weekly Update January 8, 2010
GCC markets ended the first trading week of the year on a positive note. All markets, except Bahrain, ended the week with 1–3% gains. Oman (up 3%) and Saudi Arabia (up 2.3%) gained the most.
UAE: UAE markets extended last week’s gains, with DFM and ADSM adding 1.9% and 1.2%, respectively, in the week. News of DP World meeting its debt obligation, coupled with the opening of the world’s tallest tower, Burj Khalifa, lifted investor sentiment. The real estate sector surged 6% in the week. Broad-based bullish trends were visible with participation across Consumer, Transportation and Telecom counters. Notable gainers during the week were Sorouh (+11.7%), Emmar (+4.92%), Aldar (+6.7%) and Aramex (+4.45%).
Saudi Arabia: The Saudi market recovered from last week’s downtrend to close 2.27% higher this week. Petrochemical and Telecom sectors saw heavy buying interest in Saudi Arabia. Rising crude prices triggered optimism in petrochemical counter and market heavy-weights SABIC (+5.45%), Kayan (+3.57%) and Yansab (+6.58%) edged higher in the week. Board level changes in Samba drove shares up 4.45%, while approval of capital structure changes in Kingdom Holding was viewed positive by investors, helping the stock surge 9.57%.
Kuwait: Kuwait Stock Exchange closed marginally positive at 7011. The losses in trade in early days of the week were more than offset by strong rally in the last three trading sessions. Banking and Food counters saw buying interest with the sectoral indices gaining 1.28% and 1.9%, respectively. Positive news on real estate sector sales was offset by weakness in money supply trends in Kuwait. Among the major gainers included CBK (+3.2%), Kuwait Finance House (+3.63%) and Gulf Finance House (+7.6%).
Oman: Muscat Securities Market continued its bullish trend and emerged as the highest weekly gainer within the GCC markets. Favorable macro headwinds of rising money supply, trade surplus, new tax consideration and additional investment plans announced by authorities helped the market gain 3.23% in the week. The rally was widespread with banking and financial services leading the pack. Major gainers in the financials space included BKMB (+9.9%), NBOB (+4.1%) and ONIC (+11.7%).
Qatar: The Doha Securities markets recovered last week’s losses and rose 1.12% during the week to close above 7000 levels. Insurance and Banking space showed strength with the sectoral indices gaining 4.98% and 1.56%, respectively. Heavy-weights, QNB and CBQ gained 1.8% and 1.9%, respectively. Doha Bank ended 2.3% higher.
Bahrain: The Bahrain Stock Exchange closed marginally lower at 1450, beginning the year on a negative note. Investments and banking sector ended in the red, with Ithmaar Bank (down 10.5%) witnessing profit booking to end its two-week winning streak. Market heavy-weights, AUB and NBB rose 1.1% and 1.7%, respectively. AlBaraka Banking closed down 5.6% in the week.
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