- Trading activities fell due to negative sentiments over the region
- Market capitalization declined 11.4%YoY in 2015
GCC markets close lower in 2015
GCC markets closed lower in 2015; the sharp fall in oil prices weighed on investor sentiments most of the time. Notably, oil touched its 11-year low during 2015, and went below USD35 per barrel, negatively impacting the investors’ sentiments. Saudi Arabia’s decision to maintain oil production further invoked a bearish outlook. During the end of the year, budget releases by Qatar and Saudi Arabia designated massive spending cuts by the two countries. Furthermore, these two countries announced budget deficits in 2016, which led to further dampening of sentiment. Saudi’s verdict to cut energy subsidies and raise feedstock cost led to a sharp plunge in the country’s petrochemical stocks. Overall, markets remained volatile during most sessions in the year, with thin trading during festive seasons. TASI (-17.1%YoY) was the key laggard of the year, followed by DFM (-16.5%YoY), QSE (-15.1%YoY), MSM30 (-14.8%YoY), BSE (-14.8%YoY), KSE (-14.1%YoY), and ADX (-4.9%YoY).
Combined market capitalization down 11.4%YoY
The combined market capitalization of GCC bourses declined 11.4%YoY to USD856.3bn in 2015 from USD954.2bn in 2014. The Saudi bourse, which registered a 7.1%YoY fall in market capitalization, was the biggest contributor to the overall market capitalization (USD420.8bn or 49.1%), followed by the Qatari bourse (USD128.0bn or 15.0%), and the Abu Dhabi and Dubai bourses (USD186.7bn or 21.8%). The Kuwaiti, Omani, and Bahraini bourses contributed USD120.8bn and together added 14.1% to the total market capitalization of the region.
Trading declines in 2015
Trading across GCC markets declined in 2015. The volume and value of shares traded fell 33.5%YoY and 31.5%YoY, respectively, owing to a fall in trading activities across members due to weaker sentiments over the fall in oil prices during the year.
