09 April 2012
MUSCAT -- Positive news flow in March from the macro perspective and good FY2011 earnings by the GCC listed companies has led to an improved market sentiment which in turn seems to help the GCC markets regain investor confidence, said Global Investment House in its latest analysis of Gulf bourses.
Positive performances were dominant throughout most markets in first quarter of 2012, with the exception of Muscat Securities Market. Other than that, all remaining GCC markets managed to eke out gains by the end of the Q1, 2012. The Saudi Stock Exchange (Tadawul) was the star of the show this quarter, with Tadawul All Share Index (TASI) index adding 22.09 per cent in Q1, 2012. Dubai Financial Market followed, adding 21.83 per cent in the first quarter of 2012. From monthly perspective, GCC continued to edge higher, with four out of the six regional markets landing in green. Saudi Market was the biggest gainer in March, adding 7.75 per cent.
The region as a whole saw 37.01 billion shares (+17.7 per cent) changing hands in March, at a value of $94.3 billion (+42.4 per cent). The market cap of the GCC region reached $781.3 billion at the end of March 2012 as compared to $750.2 billion reported at the end of February 2012, registering a monthly gain of 4.1 per cent. Total volume of shares traded during the first quarter of 2012 stood at 86.2 billion shares, with an aggregate value of $206.9 billion, executed through 14.7 million deals. Oman's benchmark retreats in March as some stocks weigh after hitting their ex-dividend date. Muscat's benchmark MSI dips 0.5 per cent to finish at 5,690 points, its lowest close since February 22, 2012. Al Ahlia Converting Industries drops 72 per cent and Abrasives Manufacturing Company falls 45.4 per cent.
Saudi Stock Exchange hits a fresh 42-month high, with investors buoyed by upbeat US economic data and a surge in world stocks. Tadawul All Share Index rose 7.75 per cent to reach 7,835.15 points, its highest level since September 2008. The gain was accompanied by growing trading activity. Volume of shares was recorded at 14.9 billion shares. Trading activity was intense on Zain (7030), which witnessed the highest traded volume in terms of 2.5 billion shares. Zain Saudi has said it wants to cut its capital by 66 per cent to alleviate mounting losses and then issue SAR6bn of new shares. The new equity would be used to reduce bank debt and enhance the operator's network, it said last year. Alinma Bank was the value leader for the month. Investors exchanged SAR26.84 billion shares of the company.
The scrip ended March at SAR15.6, up 26.83 per cent.
Saudi Arabia, the biggest market in terms of market capitalisation registered a growth of 8 per cent as its market capitalisation reached $410.4bn at the end of the month. Etihad Atheeb Company was the top gainer for the month, adding 75.4 per cent. The scrip resumed trade following a 10-month suspension. The company received approval to resume trading after it announced plans for a capital increase. Etihad Atheeb will raise its capital from SAR400 million ($106.66mn) to SAR1,575 million by selling 117.5 million shares at a price of SAR10 per share. In Kuwait, March trading activity further contributed more gains to the KSE during the first quarter of 2012. The trading activity during the month of March supported the market through the positive performance of leading stocks, while smaller stocks continued to move higher.
The month of March was busy, scheduled with general assembly meetings of listed companies. More than 35 AGMs took place during March through which more than KWD257mn cash dividends were distributed by 6 local banks to their shareholders. Market trading activity rose to a new record in terms of traded value (KWD936.54 million), unprecedented since June of 2009.
Global General index, which measures the performance of the market based on market-weight method, has increased by 1.24 per cent by the end of March as the index closed at 183.20 points. Market sector indices ended the month on a positive note. Global Real Estate Sector Index was the biggest gainer this month, adding 5.93 per cent.
Global Services Sector Index was the second biggest gainer, adding 2.33 per cent to its value, in line with 2.35 per cent increase in the share price of the second biggest company in KSE, Mobile Telecommunication Co (ZAIN). On March 31, 2012, the company AGM and EGM approved the distribution of 65 per cent cash dividends for the year ended December 31, 2011. In terms of top gainers, Equipment Holding Company was the top gainer for the month, adding 61.8 per cent. On the other side, Kuwait Business Town Real Estate Company was the biggest loser, as its share price fell by 35.2 per cent to close at KWD0.0175.
UAE markets returned to negative territory after two months of impressive gains. Profit-taking drove the UAE markets to end the month on a lower note. Dubai Financial Market General Index shed 4.71 per cent ending at 1,648.87 points. Kuwaiti-based Al Mazaya Holding Company was the top loser in March, shedding 32.97 per cent. In the meantime, Abu Dhabi's index dipped by 2.23 per cent during March as investors cashed in recent gains. Al Wathba National Insurance Company falls 32.2 per cent and Sorouh Real Estate sheds 2.48 per cent.
Qatar's bourse ended at an 11-week high as sentiment picks up ahead of first-quarter earnings. The index of the Qatar Exchange gained 0.50 per cent, during March 2012, as compared to the previous month, to close at 8,790.73 points.
Macro economy news, cheered the investors sentiment. Qatar's economy expanded 14 per cent in inflation-adjusted terms last year, a slower pace than many analysts had expected. Real gross domestic product grew 4.4 per cent quarter-on-quarter, and 14.7 per cent on an annual basis, in the final three months of 2011. Among the major gainers in the month was Dlala Brokerage and Investment Holding Company. The scrip closed by 79.2 per cent.
In the oil markets, Brent crude hovered around $124pb by end of March as news of a surge in US crude inventories and Western nations' talks on releasing strategic oil reserves offset supply disruption concerns over tension in the Middle East. It's worth mentioning that Brent gained 14.4 per cent in the 1Q2012 and reached its 2012 high of $128.40 on March 1, while US crude gained 4.2 per cent in the first quarter of 2012.
MUSCAT -- Positive news flow in March from the macro perspective and good FY2011 earnings by the GCC listed companies has led to an improved market sentiment which in turn seems to help the GCC markets regain investor confidence, said Global Investment House in its latest analysis of Gulf bourses.
Positive performances were dominant throughout most markets in first quarter of 2012, with the exception of Muscat Securities Market. Other than that, all remaining GCC markets managed to eke out gains by the end of the Q1, 2012. The Saudi Stock Exchange (Tadawul) was the star of the show this quarter, with Tadawul All Share Index (TASI) index adding 22.09 per cent in Q1, 2012. Dubai Financial Market followed, adding 21.83 per cent in the first quarter of 2012. From monthly perspective, GCC continued to edge higher, with four out of the six regional markets landing in green. Saudi Market was the biggest gainer in March, adding 7.75 per cent.
The region as a whole saw 37.01 billion shares (+17.7 per cent) changing hands in March, at a value of $94.3 billion (+42.4 per cent). The market cap of the GCC region reached $781.3 billion at the end of March 2012 as compared to $750.2 billion reported at the end of February 2012, registering a monthly gain of 4.1 per cent. Total volume of shares traded during the first quarter of 2012 stood at 86.2 billion shares, with an aggregate value of $206.9 billion, executed through 14.7 million deals. Oman's benchmark retreats in March as some stocks weigh after hitting their ex-dividend date. Muscat's benchmark MSI dips 0.5 per cent to finish at 5,690 points, its lowest close since February 22, 2012. Al Ahlia Converting Industries drops 72 per cent and Abrasives Manufacturing Company falls 45.4 per cent.
Saudi Stock Exchange hits a fresh 42-month high, with investors buoyed by upbeat US economic data and a surge in world stocks. Tadawul All Share Index rose 7.75 per cent to reach 7,835.15 points, its highest level since September 2008. The gain was accompanied by growing trading activity. Volume of shares was recorded at 14.9 billion shares. Trading activity was intense on Zain (7030), which witnessed the highest traded volume in terms of 2.5 billion shares. Zain Saudi has said it wants to cut its capital by 66 per cent to alleviate mounting losses and then issue SAR6bn of new shares. The new equity would be used to reduce bank debt and enhance the operator's network, it said last year. Alinma Bank was the value leader for the month. Investors exchanged SAR26.84 billion shares of the company.
The scrip ended March at SAR15.6, up 26.83 per cent.
Saudi Arabia, the biggest market in terms of market capitalisation registered a growth of 8 per cent as its market capitalisation reached $410.4bn at the end of the month. Etihad Atheeb Company was the top gainer for the month, adding 75.4 per cent. The scrip resumed trade following a 10-month suspension. The company received approval to resume trading after it announced plans for a capital increase. Etihad Atheeb will raise its capital from SAR400 million ($106.66mn) to SAR1,575 million by selling 117.5 million shares at a price of SAR10 per share. In Kuwait, March trading activity further contributed more gains to the KSE during the first quarter of 2012. The trading activity during the month of March supported the market through the positive performance of leading stocks, while smaller stocks continued to move higher.
The month of March was busy, scheduled with general assembly meetings of listed companies. More than 35 AGMs took place during March through which more than KWD257mn cash dividends were distributed by 6 local banks to their shareholders. Market trading activity rose to a new record in terms of traded value (KWD936.54 million), unprecedented since June of 2009.
Global General index, which measures the performance of the market based on market-weight method, has increased by 1.24 per cent by the end of March as the index closed at 183.20 points. Market sector indices ended the month on a positive note. Global Real Estate Sector Index was the biggest gainer this month, adding 5.93 per cent.
Global Services Sector Index was the second biggest gainer, adding 2.33 per cent to its value, in line with 2.35 per cent increase in the share price of the second biggest company in KSE, Mobile Telecommunication Co (ZAIN). On March 31, 2012, the company AGM and EGM approved the distribution of 65 per cent cash dividends for the year ended December 31, 2011. In terms of top gainers, Equipment Holding Company was the top gainer for the month, adding 61.8 per cent. On the other side, Kuwait Business Town Real Estate Company was the biggest loser, as its share price fell by 35.2 per cent to close at KWD0.0175.
UAE markets returned to negative territory after two months of impressive gains. Profit-taking drove the UAE markets to end the month on a lower note. Dubai Financial Market General Index shed 4.71 per cent ending at 1,648.87 points. Kuwaiti-based Al Mazaya Holding Company was the top loser in March, shedding 32.97 per cent. In the meantime, Abu Dhabi's index dipped by 2.23 per cent during March as investors cashed in recent gains. Al Wathba National Insurance Company falls 32.2 per cent and Sorouh Real Estate sheds 2.48 per cent.
Qatar's bourse ended at an 11-week high as sentiment picks up ahead of first-quarter earnings. The index of the Qatar Exchange gained 0.50 per cent, during March 2012, as compared to the previous month, to close at 8,790.73 points.
Macro economy news, cheered the investors sentiment. Qatar's economy expanded 14 per cent in inflation-adjusted terms last year, a slower pace than many analysts had expected. Real gross domestic product grew 4.4 per cent quarter-on-quarter, and 14.7 per cent on an annual basis, in the final three months of 2011. Among the major gainers in the month was Dlala Brokerage and Investment Holding Company. The scrip closed by 79.2 per cent.
In the oil markets, Brent crude hovered around $124pb by end of March as news of a surge in US crude inventories and Western nations' talks on releasing strategic oil reserves offset supply disruption concerns over tension in the Middle East. It's worth mentioning that Brent gained 14.4 per cent in the 1Q2012 and reached its 2012 high of $128.40 on March 1, while US crude gained 4.2 per cent in the first quarter of 2012.
© Oman Daily Observer 2012
