Mixed performance by regional markets during the week due to lack of catalysts and profit booking among investors


Abu Dhabi and Qatar ensure a positive month, while Dubai, Kuwait and Saudi are straddling the breakeven mark Al Masah Capital Reports

With further clarification on the long-awaited tax reforms, US markets reached another record high albeit with a modest increase relative to the previous week. Dow Jones ended the week up 0.98% while S&P500 ended it +0.85%. Crude ended the week slightly below the USD56 mark per barrel, sparing its highly correlated regional markets any aggressive downward movements.

Regional markets had a mixed performance during the week due to lack of catalysts and profit booking among investors. Egypt came in as the worst performer among its peers going down by 3.3%, with interest hovering around the USD/EGP which is currently in the 15.5-16 area after reaching highs of 19 following the devaluation. Saudi Arabia came in second among the losing team with 1.2% decline over the week with negative headlines on the much anticipated Aramco IPO valuation. UAE markets witnessed volatility in the penny/retail space while blue chips took a back seat, Dubai ending the week lower by 0.46% while Abu Dhabi was up by 0.22%.  Qatar had a modest upward tick of 0.98% over the week, backed by investors’ anticipation for a FTSE upgrade.

3 trading days left this coming week for February to close its books. Right now only Abu Dhabi and Qatar are comfortably in the green to ensure a positive month. Dubai, Kuwait and Saudi are straddling the breakeven mark so could easily be negative or positive at the close of the month. Egypt being down 3.6% on the month seems like negative territory is where it might end up unless we get a new wave of buying for the next 3 days.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,633.91 -0.46% -0.25% 2.92%
Abu Dhabi (ADSMI) 4,653.39 0.22% 2.30% 2.35%
Saudi (SASEIDX) 7,046.17 -1.19% -0.78% -2.28%
Kuwait (KWSE) 6,809.78 -0.22% -0.33% 18.47%
Egypt (EGX30) 12,240.53 -3.25% -3.41% -0.85%
Qatar (DSM) 10,925.40 0.98% 3.10% 4.68%
Bahrain (BHSEIDX) 1,349.31 1.93% 3.50% 10.56%
Oman (MSM30) 5,849.52 0.11% 1.27% 1.16%
TR GCC (Reuters) 213.20 0.19% 1.77% 5.23%
DJ MENA 532.65 -0.57% 0.81% 6.97%

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, Al Masah advises qualifying investors on growth opportunities in 13 focus markets in MENA and South East Asia.