Bahrain - The Bahrain Bourse All Share Index advanced 1.2 per cent in June, building on a modest 0.5pc rise in May, to close the month at 1,943.8 points.

A report by Kuwait-based Kamco Invest says the uptick came despite a notable slowdown in trading activity, largely attributed to Eid holidays.

Sectoral performance leaned positive, with four of seven indices recording gains. The heavyweight financials index rose 0.9pc, bolstered by strong showings from key constituents. GFH Financial Group climbed 10.6pc, while Kuwait Finance House-Bahrain gained 6.7pc, significantly contributing to the sector’s overall improvement.

Consumer discretionary emerged as the top-performing sector, surging 6.2pc to end June at 3,325 points. Two of its three component companies saw share price increases, driving the index’s robust performance.

Positive

The materials index also posted a solid 3.7pc gain, solely attributable to a similar rise in Alba, its only constituent. These gains, alongside a 1.3pc increase in the real estate index, collectively supported the market’s overall positive trajectory.

Among individual stocks, Gulf Hotel Group led the monthly gainers, with its share price jumping 16.7pc. GFH Financial Group and Bahrain Car Park followed, up 10.6pc and 10.3pc, respectively.

Conversely, Ithmaar Holding experienced the steepest decline, plunging 28.6pc. Solidarity Bahrain and Trafco Group also registered drops of 8.4pc and 7pc, respectively.

Trading activity on the Bahrain Bourse saw a significant downturn in June. Total volume of shares traded fell 29.1pc to 77.4 million, down from 109.1m in May. Similarly, the total value of shares exchanged declined 24.7pc to BD18.2m from BD24.2m the prior month.

Al Salam Bank–Bahrain dominated trading volumes, with 51.8m shares exchanged, while also leading in value traded at BD11.1m. Esterad Investment and Beyon also saw substantial activity.

In broader economic news, the World Bank projects Bahrain’s economy to expand 3.5pc in 2025 and 3pc in 2026. This anticipated growth is underpinned by a gradual increase in oil production as output cuts are rolled back, though global oil prices could soften amid weaker demand.

On the trade front, Bahrain’s non-oil imports rose 20pc to BD575m in April 2025, compared with BD481m in the same month last year. Non-oil exports of national origin also increased, up 22pc to

BD338m in April 2025 from BD277m a year earlier. The country’s trade deficit widened to BD166m in April 2025, from BD126m in April 2024.

Zooming out, GCC stock markets staged a strong recovery in the latter half of June, driving the MSCI GCC index up 3.1pc for the month after an initial two-month low.

The broad-based gains saw nearly all markets rise, with Kuwait leading the pack with a 4.2pc increase, closely followed by Dubai at 4.1pc. Abu Dhabi and Qatar gained 2.8pc and 2.7pc respectively, while Saudi Arabia was up 1.6pc. Oman bucked the trend, declining 1.3pc.

Sector-wise, only the energy index saw a marginal dip of 0.6pc, with all other sectors registering gains. Insurance was the top performer, surging 8.2pc, followed by consumer durables and apparel (6.7pc) and banks (4pc).

The June rally pushed the GCC’s first-half 2025 performance into positive territory, with a 1.5pc gain. Kuwait remained the region’s leader year-to-date, up 14.8pc, driven by large-cap stocks with its Premier market index gaining 17.2pc. Dubai also showed double-digit growth of 10.6pc, while Abu Dhabi and Qatar gained 5.7pc and 1.7pc respectively.

In contrast, Saudi Arabia registered the largest year-to-date decline in the GCC, down 7.2pc, followed by Bahrain and Oman with smaller dips of 2.1pc and 1.7pc. Large-cap sectors like telecom (up 13.7pc) and banks (up 9.9pc) led regional year-to-date performance, while utilities, F&B, and healthcare saw double-digit declines.

Globally, the European Stoxx 600 benchmark declined 1.3pc, while US and emerging markets indices posted mid-single digit gains. Crude oil prices traded below $70 a barrel as war risk premiums receded, and gold remained largely flat.

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