22% of GCC companies receive research coverage during 2Q11

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22% of GCC companies receive research coverage during 2Q11 22 - Jul - 2011

Equity markets witnessed the same level of attention in 2Q11, compared to the previous quarter. Fourteen brokers published 235 research notes on 143 companies during 2Q11, compared to the 245 research notes on 134 companies published in 1Q11, according to a recent report by Kuwait Financial Centre “Markaz” on GCC Equity Research Statistics. During this quarter, 22% of all GCC companies received research coverage, representing 77% of the total market cap. Saudi Arabia, which continued to attract the most attention, accounted for 38% of research notes and 31% of the companies covered. A Positive to Neutral sentiment prevailed in GCC markets, with 49% “Buy” calls, 44% “Hold” calls, and 7% “Sell”.

Factor

Most

Least

Research Coverage

 

%

 

%

Percentage of companies

(to total GCC companies)

Qatar

36

Kuwait

12

Market Cap

UAE

95

Bahrain

21

Calls

 

 

 

 

Buy

UAE

61%

Bahrain

20%

Hold

Bahrain

70%

UAE

34%

Sell

Kuwait

14%

Oman

3%

 Sector

 

 

 

 

Companies Covered

Bank

24%

Food & Drug Retailing

0.43%

 

Best

% Gain since call

Worst

% Loss since call

"Buy" Calls

Union Properties

37.93

National Real Estate Company

-30.56

Source: Reuters Eikon, Zawya Investor, Markaz Research                                                               

The market cap of researched companies in UAE accounted for 95% of the domestic market capitalization. This was followed by Saudi Arabia (81%), Oman (79%), Qatar (74%), Kuwait (72%) and Bahrain (21%).

 

UAE was the most preferred equity market in 2Q11, with 61% of the reports receiving “Buy” ratings. On the flip side, Bahrain had a majority of “Hold” calls, at 70%. Saudi Arabia accounted for maximum number of “Buy” ratings. The proportion of “Buy” ratings in KSA decreased from 57% in 1Q11 to 51% in 2Q11. Bahrain too saw a decrease in proportion of “Buy” ratings from 50% in 1Q11 to 20% in 2Q11.

Country/

Call

Saudi Arabia

UAE

Oman

Qatar

Kuwait

Bahrain

TOTAL

Buy

45

23

19

15

11

2

115

 

51%

61%

54%

54%

31%

20%

49%

Sell

7

2

1

1

5

1

17

 

8%

5%

3%

4%

14%

10%

7%

Hold

37

13

15

12

19

7

103

 

42%

34%

43%

43%

54%

70%

44%

Total

89

38

35

28

35

10

235

 

100%

100%

100%

100%

100%

100%

100%


Source: Reuters Eikon, Zawya Investor, Markaz Research

Note: Figures represent freely accessible research notes

 

# End #

About Kuwait Financial Centre “Markaz”

Kuwait Financial Centre 'Markaz', with total assets under management of over KD 960 million as of March 31st, 2011, 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