20% of GCC companies receive research coverage during 1Q11

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20% of GCC companies receive research coverage during 1Q11 20 - Apr - 2011

Equity markets witnessed the same level of attention in 1Q11, compared to the previous quarter. Eighteen brokers published 245 research notes on 134 companies during 1Q11, compared to the 243 research notes on 127 companies published in 4Q10, according to a recent report by Kuwait Financial Centre “Markaz” on GCC Equity Research Statistics. During this quarter, 20% of all GCC companies received research coverage, representing 75% of the total market cap. Saudi Arabia, which continued to attract the most attention, accounted for 42% of research notes and 34% of the companies covered. A Positive to Neutral sentiment prevailed in GCC markets, with 52% “Buy” calls, 40% “Hold” calls, and 7% “Sell” calls.

Factor

Most

Least

Research Coverage

 

%

 

%

Percentage of companies

(to total GCC companies)

Saudi Arabia

32

Kuwait

11

Market Cap

Oman

95

Bahrain

35

Calls

 

 

 

 

Buy

UAE/Qatar

60%

Kuwait

29%

Hold

Kuwait

54%

UAE

29%

Sell

Kuwait

18%

Qatar/Bahrain

0%

 Sector

 

 

 

 

Companies Covered

Bank

23%

Insurance

0.41%

 

Best

% Gain since call

Worst

% Loss since call

"Buy" Calls

DP World Limited

27.77

Sultan Center Foods

-26.51

Source: Reuters Eikon, Zawya Investor, Markaz Research

The market cap of researched companies in Oman accounted for 95% of the domestic market capitalization. This was followed by Qatar (87%), Saudi Arabia (86%), Kuwait (66%), UAE (48%) and Bahrain (35%).

Qatar and UAE were the most preferred equity markets in 1Q11, with 60% of the reports receiving “Buy” ratings in each country. On the flip side, Kuwait had a majority of “Hold” calls, at 54%. Saudi Arabia accounted for maximum number of “Buy” ratings. The proportion of “Buy” ratings in KSA increased from 53% in 4Q10 to 57% in 1Q11. Bahrain too saw an increase in proportion of “Buy” ratings from 33% in 4Q10 to 50% in 1Q11.

Country/

Call

Saudi Arabia

UAE

Oman

Qatar

Kuwait

Bahrain

TOTAL

Buy

59

29

15

12

8

5

128

 

57%

60%

43%

60%

29%

50%

52%

Sell

5

5

3

0

5

0

18

 

5%

10%

9%

0%

18%

0%

7%

Hold

40

14

17

8

15

5

99

 

38%

29%

49%

40%

54%

50%

40%

Total

104

48

35

20

28

10

245

 

100%

100%

100%

100%

100%

100%

100%



Source: Reuters Eikon, Zawya Investor, Markaz Research

Note: Figures represent freely accessible research notes

 

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About Markaz

Kuwait Financial Centre 'Markaz', with total assets under management of KD1.03 billion as of December 31, 2010, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997.