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GCC Outperforms led by Saudi Arabia and UAE
12 - Mar - 2012
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GCC markets rallied in February, up 7.4% and pushing the YTD gain to 9%. Gains were led, for the second consecutive month, by Saudi Arabia and the UAE. The Tadawul was up 9.75% for the month while Dubai surged 20.5% due to strength in its Services, Real Estate and Construction sectors. Bahrain and Kuwait’s Weighted Index were laggards with gains of about 1% each.  


Market Indicators

Indicators

M. Cap (USD Bn)

Last  Close

Monthly Return %

2011

2010 %

P/E

TTM

Saudi (TASI)

376

7,226

9.75

12.60

-3.07

13

Kuwait SE WT.INDEX

105

409

1.06

0.94

-16.89

14

Qatar(Doha SM)

97

8,747

2.09

-0.37

1.12

10

Abu Dhabi (ADI)

76

2,611

6.40

8.69

-11.68

8

Dubai (DFMGI)

53

1,730

20.53

27.86

-17.00

11

Bahrain (BAX)

17

1,149

0.77

0.43

-20.15

8

Oman(Muscat SM)

14

5,838

4.97

2.50

-15.69

12

S&P GCC Composite Index

252

100

7.43

9.18

-8.47

12

Source: Excerpt from Markaz ‘Daily Morning Brief’




















News in the region included:

-       Debt markets in the GCC have risen exponentially, with January 2012 seeing six bonds where a combined $7.2bn was raised versus $858mn in the same month of the previous year.

 

-       According to Moody’s, the implementation of the regulation requiring the lowering of roaming rates for voice calls across the GCC will have a negative impact on all telecom operators, citing incumbent telecoms as being particularly vulnerable.

 

-       The Tadawul broke the 7,000 level for the first time since the global financial crisis began in late-2008 on optimism concerning economic growth in addition to recent regulations concerning opening the exchange to foreign investors.

 

-       The UAE Securities and Commodities Authority (SCA) is expected to finalize new regulations concerning investment funds, including issues pertaining to short-selling, by mid-2012.

 

-       The Kuwait CMA de-listed nine companies, most of which were investment firms, from the bourse due to financial problems and has ordered nine other firms to begin making concrete efforts to amend financial woes by a March 2012 deadline.

 

Volume was up 80% in the GCC while Value Traded expanded 40% to USD 62bn; liquidity was led by the UAE where monthly value traded tripled to USD937mn. Saudi Arabia and Kuwait saw liquidity up 35% and 51%, respectively.

Value & Volume Traded Indicators

 

 

 

Volume Parameters

Value Parameters

% of Volume Traded

% of Value Traded

 

Volume Traded (Mn)

LTM Avg Volume Traded (Mn)

 

Top 5 Volume Traded Concentration in Market Cap

Value Traded (USD Mn)

LTM Avg

Value Traded (USD Mn)

 

Top 5 Value Traded Concentration in Market Cap

MoM Deviation (%)

MoM Deviation (%)

39%

90%

Saudi Arabia

9,280

4,870

24%

3%

56,003

29,040

35%

24%

49%

5%

Kuwait

11,521

3,978

83%

1%

3,294

1,879

51%

12%

11%

2%

UAE

2,538

3,429

95%

6%

937

1,262

222%

6%

1%

2%

Qatar

128

171

-9%

15%

1,529

1,695

10%

48%

1%

0%

Oman

220

176

-8%

21%

229

180

29%

41%

0%

0%

Bahrain

45

42

150%

7%

20

21

109%

40%

 

 

Total GCC

23,732

12,665

79%

 

62,011

34,077

39%

 

Source: Markaz Research

 

Risk in the GCC (as measured by the Markaz Volatility Index – MVX) was up 21% in February after surging 67% in January. Risk was led by Kuwait where MVX doubled while MVX Qatar and Abu Dhabi declined.

Global Markets review

World markets had another positive month due to continued positive economic signs, as both equities and commodities saw gains. Crude oil jumped 10.52% to $122.66/bbl as US tension with Iran increased. CBOE Vix shed 5% while the Ted Spread was down 14%.

The World broad index gained 4.7% in February mainly on strength from Japan and Europe. The Nikkei 225 surged 10.5% while Europe was up 6%. The lowest performance was in Frontier Markets which were up just 2.3%.

Monthly Returns



 

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About Kuwait Financial Centre “Markaz”

Kuwait Financial Centre S.A.K. 'Markaz', established in 1974 with total assets under management of over KD 865 million as of December 31st, 2011, is the leading and award winning asset management and investment banking institution in the Arabian Gulf Region. Markaz is listed on the Kuwait Stock Exchange (KSE) since 1997 under ticker Markaz.

 

 

For further information, please contact:

Osama Al Musallam

Assistant Officer

Media & Communications Department

Kuwait Financial Centre S.A.K. "Markaz"

Tel: +965 2224 8000 ext 1819

Dir: +965 2224 8075

Fax: +965 2241 4499

Email: omusallam@markaz.com

www.markaz.com

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