Inconsistent & divergent regional trading patterns as buyers and sellers pick different trades– Reports Al Masah Capital


al masah capital logoOctober trend lines stayed the same with buyers focused predominately on Saudi and Egypt as well as potential oil deal and value buying, allowing Saudi to gain 5% on the month. Egypt continues to be buoyed by the upcoming devaluation although the uncertainty over timing is causing volatility to spike; nevertheless October’s 5% gain is added to Egypt’s annual return of nearly 20%, reports Al Masah Capital Limited.

Whilst buyers focused on these two countries, UAE took the brunt of the sellers focus. Both Dubai and Abu Dhabi dropped 5% and 4% respectively. The selling pressure has reduced Dubai’s once stellar annual 2016 returns to just 5% while Abu Dhabi is in danger of falling back into the red.

The mixed trading being seen across the regional markets and with various trend lines and different trading patterns is causing investor anxiety to increase and buying conviction to deteriorate.

October’s average return across all regional markets is hovering around 0%; this is directly reflective of the average annual 2016 return which is also around breakeven. As we head into November, no one is certain where the markets will end up. Could it be like 2014 when the last quarter destroyed the markets or would it be like 2013 when the markets closed on a high? The first few week of November may provide the answer with numerous triggers like oil, earnings and US elections ready to fuel the markets.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,318.39 -0.66% -4.49% 5.31%
Abu Dhabi (ADSMI) 4,292.50 -0.05% -4.11% -0.34%
Saudi (SASEIDX) 5,936.30 5.03% 5.57% -14.11%
Kuwait (KWSE) 5,397.85 1.44% -0.01% -3.87%
Egypt (EGX30) 8,343.31 0.80% 5.86% 19.09%
Qatar (DSM) 10,371.17 -0.64% -0.62% -0.56%
Bahrain (BHSEIDX) 1,148.16 -0.32% -0.16% -5.57%
Oman (MSM30) 5,497.05 -1.17% -4.00% 1.68%
TR GCC (Reuters) 194.29 0.36% -1.63% -0.08%
DJ MENA 473.51 2.56% 2.39% -4.91%

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.