Bahrain bourse sees active trading and strong performer gains in April

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The Bahrain Bourse closed April 2024 with a minor monthly dip of 0.7 per cent in its All Share Index, settling at 2,029.06 points. This slight decline was balanced by positive developments, including a surge in trading activity and notable gains for individual stocks.

Trading on the exchange boomed in April, with total volume traded jumping an impressive 82.7pc to reach 184.3 million shares compared to the previous month. Similarly, the total value traded grew by 5.5pc, reaching BD24.5 million. GFH Financial Group led the pack in both volume and value traded, highlighting strong investor interest.

Sectoral performance revealed some shifts, with five of the seven indices experiencing declines. However, the Materials Index defied the trend, posting a solid 3.3pc gain driven by a similar rise in Aluminium Bahrain’s share price, the sole company in the index. Meanwhile, the Consumer Discretionary Index also notched a marginal gain of 0.7pc.

While some sectors saw declines, individual companies thrived. Bahrain Commercial Facilities topped the gainers’ list with an impressive 36.4pc share price increase. Ithmaar Holding and Bahrain Islamic Bank also shone, recording gains of 9.1pc and 4.5pc, respectively.

Bahrain’s economic fundamentals remain strong. Official data confirms a 2.4pc annual growth in 2023, with the national GDP reaching BD13.7 billion ($36.2bn), primarily driven by expanding financial projects.

This growth reflects the success of the country’s diversification efforts. Additionally, positive news emerged regarding a potential merger between National Bank of Bahrain (NBB) and Bank of Bahrain and Kuwait (BBK). While in its initial stages, this collaboration could further strengthen the banking sector.

In a move that underscores Bahrain’s banking sector’s dynamism, Al Salam Bank announced the signing of a deal to acquire Kuwait Finance House’s (KFH) entire stake in KFH-Bahrain, subject to regulatory approval. This strategic acquisition positions Al Salam Bank for further growth.

Overall, April 2024 presented a mixed picture for the Bahrain Bourse. While the All Share Index saw a slight decline, strong trading activity, sectoral shifts, and individual stock gains paint a positive outlook. The economic growth and potential mergers further bolster confidence in Bahrain’s robust financial landscape.

The broader GCC equity index extended its losing streak in April, declining 2.1pc as global headwinds weighed on regional markets.

Inflation concerns, particularly in the US, alongside profit-taking and ongoing geopolitical tensions, dampened investor sentiment across the GCC bourses. This follows a broad-based decline in most global indices during the month.

Oman was the lone bright spot, recording a second consecutive month of gains. All other GCC markets witnessed single-digit declines, with the MSCI GCC index slipping into negative territory for the year-to-date (YTD) period, currently down 2pc.

Large-cap sectors like energy, banks and telecom took a hit, reflecting the broader market weakness. However, defensive sectors such as utilities and pharma and biotech offered some respite, rising 6.6pc and 3.8pc respectively in April.

The YTD performance mirrored the monthly trend, with aforementioned large-cap sectors in the red. However, six sector indices managed to deliver double-digit gains so far in 2024.