22% of GCC companies receive research coverage during 2Q11


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”.

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.

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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