Complex Made Simple

First half trading: Five winners and two losers

Gulf stock markets concluded the first half trading of the year today with five winners topped by Muscat which is the smallest in terms of market value but saw a rise of 25.3%. Two markets have declined in the H1 including the Saudi market by 16.3%, despite being the biggest in terms of market value, followed by the Dubai Financial Market, with a drop of 8.2%.

By Abdul Rahman Ismail

Doha stock market topped the emerging markets in the second quarter of the year rising 24.1%, coming second after Muscat in terms of growth with 23.8%.

Kuwait Stock Exchange came third with 23%, of which 8.1% was in the second quarter. Abu Dhabi came fourth with 8.8% and Bahrain fifth with 3.7%, including 2.5% for the second quarter.

All Gulf stock markets registered a decline by the end of June trading except Kuwait which rose by 2.9%. Dubai Financial Market posted the biggest losses during June, dipping 4.1%, followed by Muscat which lost 1.9%, KSA 1.8%, Bahrain 0.50% and Doha by 0.19%.

UAE: Dhs366bn trading for H1

Despite the decline registered by UAE markets in H1, which totalled 0.01%, it rose by 5.4% in the second quarter to win Dhs54.5bn according to the market authority.

The first half trading reached Dhs366bn, including Dhs166.3bn in the second quarter.

DFM took Dhs78.6bn, while Abu Dhabi took Dhs88.2bn.

Emaar shares topped the most traded list during H1 with Dhs40bn, but came second in shares with the most losses, dipping 27%.

Asmak had the highest rise during H1 with a 358.1% increase.

CEO of Daman Investments Shahab Qirqash said that UAE stock market performance during the H1 is disappointing, blaming the bonds funds which made great impact on the markets. DFM was especially affected by the issues with Deyaar and the Dubai Islamic Bank case.

Qirqash expressed optimism for the second half with a belief among investors that UAE shares are the cheapest, making them attractive for investors, and eventually they will see a record rise during the second half of the year.

Dubai and Abu Dhabi rebound up on the day

Dubai and Abu Dhabi rebounded up after four consecutive sessions of decline.

Abu Dhabi regained yesterday’s losses and rose by 1%, while DFM rose by 0.70% with a trading value of Dhs3bn for both markets.

Today’s rebound gave hope for small investors that the market will improve again after a wave of declines which hit leading shares.

Heavyweight shares like Emaar, Emirates-NBD, and Dubai Islamic bank stabilised today while small shares like Du, Aramex, and Atabtech rose strongly by 4.1%, 3.2% and 2.2% respectively.

Abu Dhabi market strongly rebounded supported by speculation on Methaq and Rak Cement which together dominated 50% of the market trading, which reached Dhs2bn, rising by 6.1% and 4% respectively.

Saudi Arabia: Fluctuation continues

The Tadawul market index continued its fluctuation for the second session and changed its trend in the last minute, going up 0.30% but finished the first half as the biggest loser with a fall of 16.3%.

The banking sector, including Al Rajhi which rose by 2%, Arab National Bank 2.4% and Samba by 0.97% pushed the index to close up. Al Inmaa bank share fell by 1.3%.

Sabic fell by 1% at SR140.25 despite trading SR901m out of total trading of 6.5bn.

Related shares like Yansab also fell by 1.7%, Kayan by 1%, while Safco rose by 1.2% at SR257.50 despite Global setting its fair price at SR252.50.

Saudi analysts expect strong performances in the coming period with companies preparing to announce H1 profits, including record profits for Sabic.

Kuwait’s market continue its profit wave

The Kuwaiti stock exchange fell for the fourth consecutive session with the index down today by 0.18%.

Kuwait Commercial Bank registered a good rise, going up by 1.3% supported by new rating by Global which recommended buying the share.

Global itself fell by 1.9% despite selling 5% stake in Burgan Group worth KD8.6m.

Muscat and Bahrain: Index supported by few shares

The Muscat market fell by 0.41% after the decline of most leading shares.

Al Anwar Ceramic and United for Finance dominated one third of trading which reached OR13.6m, Al Anwar Ceramic fell by 0.31% while United for Finance rose by 5.4%.

Bahrain’s stock market rose by 0.44% supported by Ithmaar bank which rose by 2.7%, trading 3 million shares.

Khaleeji Commercial Bank took the lion share of trading with 11.6 million shares out of 15.8 million shares for the whole market but closed unchanged.