• January 24, 2022

    GCC markets ended 2021 positively supported by sharp recovery in oil prices

    GCC markets had a very positive year in 2021, supported by the sharp recovery in oil prices. The S&P GCC composite index ended the year with gains of 31.4%, following a 4.0% rise in December 2021. Abu Dhabi was the best performer among GCC markets, gaining 68.2% for the year followed by Saudi Arabia with yearly gains of 29.8%. Market Performance & Key Metrics Source: Refinitiv During December, Saudi equity market outperformed its peers, increasing 4.8% followed by Dubai equity...

  • November 30, 2021

    Blue Chip Laggards in GCC Equity Markets

    The GCC Equity markets like the rest of the major world markets have been having a stellar run in 2021. Until November 21st the S & P GCC Composite Index has generated Year-to-Date (YTD) return of 35.6%, which has not been seen for many years in these markets. Valuation-wise, GCC composite index trades at P/E ratio of 23.3 and the current index value is still at a discount of 47.4% compared to its historical peak value. The performance of the...

  • October 7, 2021

    What Moved GCC Equity Markets?

    S&P GCC composite index rose by 1.5%, with Qatar and Saudi Arabia leading the gainers. Qatar’s main index rose 3.5% for the month, while Abu Dhabi ended the month mildly positive. Dubai markets gave up some of the sharp gains witnessed in the month of August, closing 2.0% down for the current month. Abu Dhabi continues to be the top performer for the year, supported by the rise in oil prices, strong earnings and favourable valuations. Despite the run-up in...

  • July 7, 2021

    Fresh listings could reinvigorate Islamic equity capital markets

    This article was originally published in Islamic Finance news (IFN) GCC regional equity markets continue to scale new peaks buoyed by global rally and increasing oil prices. S&P GCC Composite Index, an index, has gained over 20% for the year. Liquidity glut sloshing around global markets has fuelled the rally. Following the COVID-19 pandemic, central banks worldwide eased money supply and increased the availability of credit at near zero interest rates to stem economic fallout. However, the capital has found...

  • December 8, 2020

    Stock Market Commentary: Vaccine optimism drives all markets higher

    All GCC equity markets ended the month in green as oil prices jumped by 27% for the month after pharmaceutical firms Pfizer, Moderna and AstraZeneca announced favorable news on COVID-19 vaccine development that rose investor hopes of quick recovery. Kuwait stock markets rose for the month with the Kuwait Main Market index registering a gain of 1.6%. Kuwait All Share index gained of 0.3% while its index PE ratio stood at 20, a premium of 33% compared to S&P GCC...

  • August 21, 2019

    Foreign investment in GCC equity markets – Will the inflow levels sustain after index inclusions?

    GCC countries are in the process of opening their economies to make them more attractive to foreign investors. The inflow of foreign funds through FDI would augur well for diversification of these economies away from oil to reduce their large oil dependence more so because its markets are cyclical and volatile. Attracting investments in non-oil sectors through equity markets is also one of the means to achieve this goal. Foreign equity inflows into GCC capital markets is expected to rise...