UAE markets will be trading sideways for the coming period – Al Masah Capital Weekly Report

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Investors will be back to relatively higher trading volumes driven by country specific macro news coupled with potential selective stocks’ updates

Four out of the eight regional markets were closed in the last week of June, while the rest witnessed thin trading volumes with investors being inactive because of the Eid break. With Ramadan and Eid break behind us, investors will be back to relatively higher trading volumes driven by country specific macro news coupled with potential selective stocks’ updates.

Saudi’s inclusion in the MSCI watch list for a potential upgrade will still have its positive effect on most of the listed stocks, supported by the increase in oil prices above USD 48 per barrel last week, after reaching a low of USD44.71 just before Eid break.

Over the week- end, Egypt moved forward with its earlier announcements of raising fuel and natural gas prices by more than 40% as a step towards getting the previously agreed upon IMF loan, which will have a positive effect on the economy on the long run. As for Qatar, local investors’ earlier trial s to support the Qatari market haven’t witnessed positive results, where the market will remain under pressure till the recent geopolitical tensions are being solved, the DSM20 ended the first half of 2017 down by 13.5%.

UAE markets will be trading sideways for the coming period with no specific macro or micro news to move the indices after Emaar’s development arm potential listing. For the first half of 2017, Kuwait remains to be the best performer among its regional peers being up by 17.7%, followed by Egypt +8.5%, Bah- rain +7.3% and Saudi + 3.0%. Qatar came in the worst performer for 1H 2017 down by -13.5%, followed by Oman – 11.5%, Dubai – 3.9% and Abu Dhabi – 2.7%.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,392.00 -0.30% 1.58% -3.93%
Abu Dhabi (ADSMI) 4,425.40 -0.14% -0.04% -2.66%
Saudi (SASEIDX) 7,425.72 8.87% 8.07% 2.99%
Kuwait (KWSE) 6,762.82 -0.14% -0.33% 17.65%
Egypt (EGX30) 13,395.81 -0.16% 0.42% 8.51%
Qatar (DSM) 9,030.44 -2.46% -8.80% -13.47%
Bahrain (BHSEIDX) 1,310.04 -0.22% -0.74% 7.34%
Oman (MSM30) 5,118.31 -2.48% -5.60% -11.49%
TR GCC (Reuters) 191.35 -0.31% -3.84% -5.55%
DJ MENA 525.62 0.05% 2.94% 5.56%

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.