Wednesday, May 29, 2024

Positive performance in GCC equity markets driven by Saudi Arabia and the UAE


Heading: Optimistic Bounce Back in GCC Equity Markets in June

After a decline in May, Gulf Cooperation Council (GCC) countries experienced a positive rebound in equity market index performances in June. The UAE and Saudi Arabia emerged as the top performers, according to a report by Kamco Invest.

Heading: UAE’s Dubai Financial Market Leads the Way

The Dubai Financial Market (DFM) in the UAE was the best-performing market in the GCC in terms of index closings, with a monthly increase of 6 percent. This growth can be attributed to increases in six out of the eight indices, including the financial, real estate, and industrial sectors. DFM closed June with a market cap of 650.2 billion dirhams ($177 billion) at 3,792 index points.

Heading: Saudi Arabia’s Tadawul All Share Index Shows Promising Results

Saudi Arabia’s Tadawul All Share Index (TASI) also exhibited positive performance, with a rise of 4 percent. The benchmark TASI reached a closing high of 11,466.0 points on June 21, 2023, but experienced a slight downward trend by the end of the month, closing at 11,459.0 points. However, TASI trading activity witnessed a decline due to the Eid holidays.

Heading: Kuwait and Oman Follow Suit

Kuwait’s equity market came in third with a 3.4 percent month-on-month increase, while Oman’s market saw a 3.1 percent incline. These results indicate a positive trend in the GCC region as a whole.

Heading: Qatar and Bahrain Experience Declines

On the other hand, equity markets in Qatar and Bahrain reported declines in June. Qatar’s market experienced a decline of 0.8 percent, marking the fifth consecutive month of decline for the QE General Index. Bahrain’s bourse also saw a decline for the first time after three months of positive performance, closing June with 1,957.87 points.

Heading: Factors Contributing to Bahrain’s Decline

The decline in Bahrain’s market can be attributed to drops in two of its seven sectors. The materials index recorded a 2.2 percent decrease, while the Industrials index dropped by 0.9 percent. These factors played a significant role in Bahrain’s overall decline.

In conclusion, June witnessed an optimistic bounce back in equity market index performances in the GCC. The UAE’s Dubai Financial Market and Saudi Arabia’s Tadawul All Share Index emerged as the top performers, showcasing positive growth. Kuwait and Oman also experienced notable increases, indicating a positive trend in the region. However, Qatar and Bahrain faced declines, with Qatar’s market continuing its downward streak and Bahrain experiencing a decline after three months of positive performance. These market fluctuations highlight the dynamic nature of the GCC equity markets and the importance of monitoring market trends for investors in the region.

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