The Bahrain Bourse All Share Index saw a 1.4 per cent decline in August, snapping a three-month winning streak.

Analysis by Kuwait-based Kamco Invest shows that the index closed the month at 1,929.18 points, with most sectors recording negative performance.

Four of the seven indices fell, led by a 6.1pc drop in the heavyweight Materials Index, which was driven entirely by a similar decline in its sole constituent, Alba.

In contrast, the financials index posted a marginal gain of 0.1pc, closing at 7,422.1 points.

This was primarily boosted by strong performances from key players like Solidarity Bahrain, which surged 14.3pc, and GFH Financial Group, which advanced 4.1pc.

The communications services index also fell, losing 2.7pc due to a 2.5pc drop in Zain Bahrain shares.

In terms of individual stock performance, Solidarity Bahrain topped the gainers’ list for the month with its 14.3pc rise.

It was followed by Bahrain National Holding and Bahrain Kuwait Insurance Company, which saw increases of 9.6pc and 6.8pc, respectively.

On the losing side, Bahrain Commercial Facilities recorded the steepest drop at 9.8pc, followed by AlAbraaj Restaurant Group and Ithmaar Holding, which fell 9.1pc and 6.7pc.

Trading activity slowed significantly in August. Traded volume plummeted by 84.7pc to 24.6 million shares from 161.1m in July. The total value of shares traded also contracted sharply by 69.8pc, from BD28.9m to BD8.7m.

Al Salam Bank-Bahrain led trading volumes with 4.5m shares exchanged, followed by Beyon with 3.1m and GFH Financial Group with 2.9m shares.

Alba topped the value traded chart at BD2.3m, followed by Beyon at BD1.5m and National Bank of Bahrain at BD1.2m.

On the economic front, the Finance and National Economy Ministry reported that the kingdom’s economy grew by 2.7pc year-on-year in the first quarter of 2025.

This growth was supported by a 2.2pc expansion in the non-oil sector and a 5.3pc increase in the oil sector.

The non-oil sector continues to dominate, contributing 84.8pc to the country’s real gross domestic product (GDP).

Foreign direct investment also saw a healthy increase, rising 3.5pc year-on-year to reach BD17.1bn ($45.3bn), reflecting continued international confidence in the economy.

Key sectors driving this growth included accommodation and food services, which saw a 10.3pc expansion, and the largest GDP contributor, Financial and insurance activities, which grew by 7.5pc. The construction and education sectors also expanded by 5.4pc and 2.5pc, respectively.

Zooming out, the Kamco report shows that GCC equity markets declined in August, ending a two-month rally as concerns over falling oil prices weighed on investor sentiment.

The MSCI GCC index fell by 2.3pc during the month, erasing gains from the previous two months. This broad downturn was led by the Abu Dhabi market, which saw the largest decline in the region at 2.7pc.

The Saudi and Dubai benchmarks followed with losses of 2pc and 1.6pc, respectively, while Kuwait, Qatar, and Bahrain also posted marginal declines. Oman was the only market to buck the trend, recording a strong gain of 5.2pc.

On a year-to-date basis, the MSCI GCC index is now up only 1.4pc, with declines in Saudi Arabia (down 11.2pc) and Bahrain (down 2.9pc) largely offsetting gains in other regional markets.

Despite the overall market slump, some sectors performed well.

The GCC materials sector gained 4.3pc, boosted by strong performances from major Saudi companies like SABIC (up 6pc), Advanced Petrochemicals (up 4pc), and YANSAB (up 2pc).

The pharma and biotech and diversified financial sectors also rose, gaining 3.9pc and 2.7pc, respectively.

Meanwhile, the insurance index saw the steepest decline, falling 7.2pc, followed by healthcare (down 3.9pc) and real estate (down 2.7pc). The banks index also dropped by 2.4pc, and the energy sector was flat.

Analysts attribute the GCC decline to a 6.1pc drop in oil prices amid concerns about oversupply and a slower-than-expected recovery in demand.

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