Regional buying momentum may be tested by a Saudi retreat while focus will shift towards earnings announcements

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Regional markets built on their gains from the first week of the year but Saudi hit a big speed bump. Kuwait, in a rare occurrence, was the best weekly performer, going up 4.7% as market participants anticipate a new wave of government spending. Dubai and Abu Dhabi kept their winning ways, going up 2.6% and 1.7% respectively – a combination of value investing in blue chips and speculative buying in penny stocks keeping the momentum going.

Strong buying also in Egypt as that market index went up 3.1% on the week – investors happy to keep adding to their positions and from a dollar perspective there is enough room for this rally to keep going although for the long-term health and vitality of this cycle, a period of profit-taking and consolidation would be welcome. Saudi, as mentioned, was the only significant loser for the week going down 3.8% – but given where the market has come from in late October, there are enough profits to be realized.

As we head into the 3rd week of January, regional buying momentum may be tested by a Saudi retreat while focus will shift towards earnings announcements.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,720.59 2.56% 5.37% 5.37%
Abu Dhabi (ADSMI) 4,681.28 1.72% 2.97% 2.97%
Saudi (SASEIDX) 6,921.77 -3.85% -4.00% -4.00%
Kuwait (KWSE) 6,107.68 4.74% 6.26% 6.26%
Egypt (EGX30) 13,223.90 3.12% 7.12% 7.12%
Qatar (DSM) 10,709.47 -0.07% 2.61% 2.61%
Bahrain (BHSEIDX) 1,211.73 0.44% -0.71% -0.71%
Oman (MSM30) 5,762.48 -0.52% -0.35% -0.35%
TR GCC (Reuters) 208.92 1.18% 3.12% 3.12%
DJ MENA 520.10 -1.13% 4.20% 4.45%


About Al Masah Capital:

Al Masah Capital is one of the fastest growing alternative asset management and advisory firms focused on the MENA and SEA regions. Established in 2010 Al Masah Capital provides tailored solutions to a broad investor base, offering private equity advisory (across Healthcare, Education, Food & Beverages, Logistics and other consumer driven sectors), asset management, corporate and real estate advisory as well as public market research services.

With operations in Dubai, Abu Dhabi and Singapore, Al Masah advises qualifying investors on growth opportunities in 13 focus markets in MENA and South East Asia.