Bahrain stock market declined 20% in 2011

Bahrain’s economy reeled under socio-political unrest that started at the beginning of the year and consequently, Bahrain Bourse had the worst performance in all Gulf Cooperation Council (GCC) markets. Bahrain All Share index shed 20.15 per cent of its value by the end of financial year 2011, according to Kuwait-based Global Investment House’s (Global) Bahrain Economic Overview Report.

“The political unrest had its effects on the trading activity of the exchange. During 2011, 520.2 million shares were traded on Bahrain Bourse, down from 612.2 million shares traded in 2010 (-15.0 per cent). Aggregate value of shares traded stood at BD105.0 million ($276.5 million), down from BD108.4 million ($285.6 million) in 2010 (-3.2 per cent),” Global stated in its latest report.

Sector wise, Commercial banking sector was the most active in terms of volume and value of shares traded in 2011, with 269.8 million shares exchanged at an aggregate value of BD50.0 million ($132.2 million), which represented 51.9 per cent and 47.6 per cent, respectively, of the market’s aggregate volume and value traded for 2011.

Within the sector, Ahli United Bank (AUB) was the top volume leader, a total of 147.0 million of AUB’s shares were exchanged, at an aggregate value of BD39.8 million ($105.2 million), representing 28.3 per cent and 37.9 per cent of the total traded volume and value on the exchange in 2011, respectively. The bank’s share price retreated by 5.3 per cent year-on-year (YoY), ending at $0.665.

Sectoral performance

No gaining sectors were seen in Bahrain Bourse by the end of FY2011. Investment index retreated by 28.8 per cent by the end of FY2011. Within the sector, share price of Al-Baraka Banking Group retreated by 20.07 per cent YoY, while Arab Banking Corporation ended 17.65 per cent lower. Industrial index was a notable decliner, shedding 26.73 percent of its value. Selling pressure mounted on shares of heavyweight, Aluminium Bahrain (Alba) throughout the year 2011, on concerns over planned gas price hike. However, during the last quarter of the year, Alba’s share price recovered and limited it annual loss to 25.97 per cent by the end of 2011, ending at BD0.660.

In the meantime, Services index dropped by 18.24 per cent. Share price of Bahrain Telecommunications Company ended FY2011 at BD0.392, down by 23.14 per cent.

On the company’s level, one five companies managed to ended the year on a higher note. The Bahrain Ship Repairing and Engineering Company was the top gainer, up by 19.19 per cent.

Bahrain Family Leisure Company followed, up by 14.13 per cent. In the meantime, share price of Bahrain Cinema Company, National Bank of Bahrain, and Bahrain National Holding Company posted marginal advances of 4.0 per cent, 2.02 per cent, and 0.49 per cent, respectively. The companies listed on the Bahrain stock exchange witnessed a substantial jump in profitability in last year, Global report stated.