DOHA: Despite global markets registering progressive gains during November, Qatar’s equity market, along with other GCC markets, carried its lacklustre sentiment through the month. Qatar Exchange (QE) index shed 1.71 percent for the month, as the services and banking sectors were under pressure, with the banking sector remaining the least-performing sector in Qatar this year.
Fixated on the outcome of discussions on the US fiscal cliff and the Euro-area debt crisis during most of the month, positive developments prompted a late-month rally in US and European equities. Asian markets also registered progressive gains during the month. However, in the absence of any significant catalysts, the GCC equity markets carried its lackluster sentiment through the month, failing to be enthused by the bounce in Oil prices from a recent low, Gulf Investment Corporation’s (GIC) monthly GCC report noted.
The Saudi bourse remained under pressure during most of the month. The Real-Estate and Insurance sectors were the lest-performing during the month, while the frontline Banking and Petrochemical sectors fared only marginally better.
Kuwait’s KWSE (Weighted) index emerged the best-performing during the month, adding a net +4.18 percent, driven by expectations of political stability following the elections. The Consumer Services and Telecom sectors were the best-performing, while the Financial Services remained under pressure, and the Banks and Real Estate sectors managed modest gains. In the UAE, Dubai’s DFM and Abu Dhabi’s ADSM indices closed with slightly different outcomes, as the ADSM index managed a marginal gain of 0.08 percent, helped by a late resurgence in the banking sector.
However, the large-cap banking and real estate sectors were net losers for the month. Meanwhile, the DFM index closed with a net loss of 0.72 percent, as the key Real Estate and Services sectors notched up losses for the month. Oman’s MSM 30 index declined 2.23 percent as losses were registered across the board, with the Banking sector emerging as the least-performing for the month.
In Bahrain, the BSE index succumbed to losses in the Services and Industries sectors and edged down by 0.86 percent for the month, despite some traction in the Banking sector. The BSE index continues to be the worst-performing sector in the GCC this year, with YTD losses of 8.30 percent.
“During November, the GCC markets remained disconnected from developments in global markets, failing to react to a recovery in major equity indices and a rally in oil prices. The markets have suffered from a lack in direction and dearth of catalysts since the announcement of unimpressive Q3 results”, the report said.
Overall, GCC markets were flat in terms of Credit Markets in November. However, Primary Market was very active, and all the issues were oversubscribed several times, signalling a good appetite for quality issuers. QNB was first to hit the market with $1bn issue maturing in 2018.
The Peninsula
