GulfBase Live Support
GCC equity markets staged a strong recovery in the latter part of 2Q20, reversing a large part of the prior losses induced by the coronavirus and its associated lockdowns and restrictions. The recovery was underpinned by rising oil prices and a gradual reopening of regional economies which helped boost optimism for a swift economic recovery.
NBK’s update on equity markets, noted the MSCI GCC index gained 11 percent quarter-over-quarter, lifted by strong gains in some regional markets. Meanwhile, Kuwait lagged behind, though still up a solid 6.4 percent q/q, supported in part by the confirmation by MSCI of the markets upgrade to EM status in November, thereby curbing some uncertainty about upgrade-related portfolio (passive) inflows which could be worth $2-3bn. This has re-ignited active foreign inflows, which were relatively dormant for most part of the year, reverting to positive net flows of KD 3.6m in June and reflecting renewed foreign investor interest in Kuwaiti stocks. Oman (2 percent) and Bahrain (-5 percent), underperformed, likely affected by high uncertainty about the economic outlook amid the coronavirus shock given their smaller reserves and fiscal buffers.
Despite various signs of improvement, downside risk remains elevated given the uncertainty surrounding both the coronavirus and oil prices, and their impact on economic growth, investor sentiment, and governments’ finances. regional equities will continue to be influenced by global factors, such as a resurgence of trade tensions and a slower-than-expected global economic recovery.
According to analysts at Kamco Invest, Qatar’s QSE-20 index was the best performing index in the GCC in July2020, as the index closed at 9368.17 points and was up by 4.1 percent month-on-month.
The Qatar All Share index which maps the broader market, also gained by 4.2 percent, as all sectors closed in the green. The Real Estate index was the best performing sectoral index gaining by 5.8 percent month-on-month.
Meanwhile, global equity markets were broadly positive in 2Q20 on optimism about a relatively swift economic recovery following the easing of lockdowns and business restrictions. The recovery was helped by continued central bank stimulus.
The stock markets in the UAE and GCC were in a tug-of-war state as investors weighed positive news on the economic front and a ‘catastrophic’ overnight explosion in Lebanon that killed at least 100.<
The MSM 30 Index closed the week up by 0.12 per cent despite lower volume and turnover as compared to the previous week. Shariah index was down by 0.07 per cent. The turnover and volumes were lower t
Oman Daily Observer
Abu Dhabi Securities Exchange (ADX) announced on Tuesday that it has listed $4 billion Fixed Rate Notes issued by MDGH GMTN B.V. and guaranteed by Mamoura Diversified Global Holding (MDGH).
The Gulf Today
Leading UAE banks have come to the bond market, and they are getting a warm response. Sharjah Islamic Bank priced its $500 million 5-year sukuk at LIBOR plus 285 bps, and received more than $3.4 bil
Domestic institutions’ strong penchant for buying Wednesday extended the bullish run on the Qatar Stock Exchange for the second straight session as its key index surpassed the 9,200 level.