- Saudi and Qatar – sole advancers
- Trading activity declines in June
GCC markets witnessed some correction in June, following a strong rally in May, reports Global Investment House of Kuwait in a new report. Most bourses ended in the red. TASI and the QE index, up 1.3%MoM and 0.4%MoM, respectively, were the sole advancers. Among losers, KSE declined the most (-6.4%MoM), followed by DFM (-6.1%MoM) and MSM30 (-1.2%MoM). Weak performance by GCC indices is mainly as a result of downtrend seen in the global equity markets. Moreover, a rally in the previous month led to some profit booking. However, all markets remain significantly up on YTD basis—DFM leads with 37.0% gains, followed by ADX (35.0%) and KSE (31.0%).
Combined market capitalization declined 0.8%MoM
The combined market capitalization of all GCC bourses declined 0.8%MoM to USD818.6bn in June. All GCC markets experienced a decrease in market capitalization, except Oman which increased 27.5% MoM, and Qatar remaining flat. TASI remained the highest contributor, added USD396.8bn to GCC market capitalization. UAE markets (Abu Dhabi and Dubai) accounted for 16.9% of GCC market capitalization, standing at a combined total of USD138.8bn in June. Qatar, the second-largest GCC market in terms of capitalization, contributed USD140.2bn (17.1%) to GCC market capitalization. Kuwait, Oman and Bahrain together amounted to USD142.9bn to market capitalization in June.
GCC trading activity declines in June
Overall trading activity in GCC countries declined in June, with fall witnessed in value and volume of shares traded. Volumes decreased 34.0%MoM with all of the markets, except Saudi Arabia and Qatar, registering MoM growth. Value traded decreased 1.8%MoM with Bahrain, Kuwait and Oman registering 62.5%MoM, 49.5%MoM and 20.3%MoM drop, respectively. Value traded in UAE decreased 13.6%MoM to USD6.2bn, while that in Saudi Arabia and Qatar gained 13.3%MoM and 12.2%MoM, respectively. Saudi Arabia’s contribution to the GCC’s total value traded increased to 72.6% in June from 66.3% in May. Kuwait’s share of total value traded reduced to 8.6% in June from 17.6% in May.
