Equity markets expected to witness volatility over the outcome of the US elections and its impact on the broader economy – Allied Investment Partners PJSC Market Report

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Global equity markets witnessed one of the worst weekly performance since March on the back of resurgence in COVID-19 cases and US election uncertainty. Moreover, the waning stimulus hopes for a pre-election deal and bleak outlook from tech majors also weighed on investor sentiments during the week. 

However, positive economic data (US GDP data and weekly jobless claims) released during the week helped in limiting the weekly losses. Oil witnessed a steep decline of 9.17% in the week as markets appeared to be concerned about the demand amid rising COVID-19 cases in Europe and the US. 

The month of October closed in negative territory as most of the leading indexes closed in red, however, emerging markets outperformed the developed during the month. In the MENA region, equity markets was broadly in negative territory, in line with the sentiments in global markets and sharp decline in oil prices. For the week, 4 out of the 7 regional indexes closed in red, while the remaining 3 closed in green. Saudi Arabia was the worst performing index regionally with losses of 7.02%, followed by 4.30% in Egypt and 1.59% in Kuwait; while Abu Dhabi was the best performing index with gains of 2.27%, followed by 0.11% in Dubai. 

Going forward, equity markets will continue to witness volatility over the outcome of the US elections and its impact on the broader economy. Although, the US elections will be over during the week, markets will remain concerned about the resurgence in new COVID cases, which could put further pressure on fragile economic recovery, especially the Eurozone. For the MENA, concerns over oil demand and resultant impact on oil prices will continue to weigh on regional markets and turn investors cautious over the remainder of the year.

IndexesLastWTD (%)MTD (%)YTD (%)
Dubai (DFMGI)2,187.860.11%-3.77%-20.87%
Abu Dhabi (ADSMI)4,660.042.27%3.14%-8.19%
Saudi (SASEIDX)7,907.72-7.02%-4.72%-5.74%
Kuwait (KWSE)4,331.92-1.59%0.66%-11.79%
Egypt (EGX30)10,515.25-4.30%-4.31%-24.68%
Bahrain (BHSEIDX)1,427.18-1.41%-0.51%-11.37%
Oman (MSM30)3,557.770.01%-1.57%-10.64%
Commodities ValueWTD (%)MTD (%)YTD (%)
Gold (s/OZ)1877.95-1.20%-0.40%23.79%
Silver ($/Oz)23.63-3.86%1.81%32.53%
WTI ($/bbl)36.17-11.00%-10.07%-40.76%
Natural Gas3.39.63%30.43%50.75%
OPEC Oil ($/bl)37.94-9.17%-10.31%-42.52%
Copper ($/MT)6709.34-2.42%1.92%8.22%
Aluminium ($/MT)1803-2.17%1.98%-1.07%
FX RatesValueWTD (%)MTD (%)YTD (%)
USD/AED3.6730.00%0.01%0.01%
USD/SAR3.7510.00%-0.01%-0.01%
USD/EGP15.7-0.06%-0.19%-1.88%
USD/EUR0.8591.83%0.63%-3.72%
USD/JPY104.67-0.05%-0.74%-3.63%

About Allied Investment Partners PJSC:

Established in 2007, Allied Investment Partners PJSC is licensed by Securities and Commodities Authority, UAE and is a leading investment firm providing various services like Asset Management, Alternative Investments, Wealth Management, Securities and Custody Services, Corporate Finance and Investment Banking Advisory.