The Bahrain Bourse All Share Index endured its worst monthly performance in 31 months during January, tumbling 5.4 per cent to close at 1,879.48 points, the steepest decline among GCC exchanges.

This marks the index’s second consecutive month of losses. A broad sectoral downturn fuelled the slide, with six of the seven sector indices registering declines.

The materials index, the second-largest weighted index on the bourse, plummeted 18.5pc, significantly impacting the overall index.

Alba, the sole constituent of the materials sector, mirrored this performance with an equivalent 18.5pc share price drop. The financials index, the largest weighted index, also retreated, albeit by a more modest 1.3pc. The consumer discretionary index fell 5.5pc to 2,679.9 points, partly due to a 13.4pc drop in Gulf Hotel Group shares.

Despite the overall bearish sentiment, some stocks bucked the trend.

Solidarity Bahrain led gainers with a 6pc share price increase, followed by Kuwait Finance House-Bahrain (4.2pc) and Bahrain Duty Free Shop Complex (2.5pc). Solidarity Bahrain recently announced a definitive agreement to acquire 100pc of bni and bnl from Bahrain National Holding for BD75m.

Conversely, Alba led decliners, its 18.5pc drop coinciding with the collapse of merger talks with two units of Maaden. Gulf Hotel Group and Trafco Group also saw significant declines, with share prices falling 13.2pc and 6.5pc, respectively.

Trading activity on the Bahrain Bourse slumped to an eight-year low in January. Total traded volume contracted by 28pc to 15.9m shares, down from 22.1m in December.

Total traded value plummeted even further, shrinking by 42.7pc to BD5.5m from BD9.6m the previous month.

Al Salam Bank Bahrain topped the volume charts with 5.1m shares traded, followed by Bahrain Telecommunications Company (1.52m) and Alba (1.51m).

In terms of value, Alba led with BD1.8m in traded shares, followed by Al Salam Bank Bahrain (BD1.1m) and Kuwait Finance House (BD0.8m).

On the macroeconomic front, Bahrain’s real GDP grew by 2.1pc year-on-year in the third quarter of 2024, reaching BD3.734bn, compared with BD4.342bn in the same period of the previous year, according to government data.

This growth was primarily driven by the non-oil sector, which expanded by 3.9pc at constant prices and 1.5pc at current prices during the quarter.

Zooming out, GCC stock markets mostly rose in January, tracking global gains.

Kuwait led the region with a 5.7pc jump, its best monthly performance in a year, boosted by broad gains across all sectors, according to market data. Saudi Arabia followed with a 3.1pc rise, while the UAE markets of Abu Dhabi and Dubai posted more modest gains of 1.8pc and 0.4pc, respectively.

Across the GCC, most sectors advanced in January, with only utilities and energy posting marginal declines. Retail led the gains, surging 8.6pc, followed by pharmaceuticals, up 7pc, and telecoms, which added 6.2pc.

Brent crude oil prices also climbed 6.4pc during the month, despite weakening in the second half.

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