Regional markets mixed as caution increases ahead of critical US election – Al Masah Capital Reports


al masah capital logoOil together with global markets continue their downward trend as global issues predominate investor thoughts. Brent prices reached a low of USD45.58 last week on fears that OPEC will not reach a deal regarding supply.

Additionally, global markets are being affected by oil prices combined by the US presidential election that is getting more uncertain as we approach the big day on Tuesday 8th.

At the end of last week, Dow Jones, S&P, Nasdaq, FTSE100 , CAC 40, and DAX all went down by -0.24%, -0.17%, -0.24%, -1.43%, -0.78%, -0.65% respectively, showing global de-risking ahead of the coming week. On the regional front, a mixed trend for the week with Saudi Arabia going up 2.09% as it continues its recovery from the recent lows and Egypt +5.59% as the Central Bank of Egypt (CBE) finally devalued the pound.

According to an announcement by the CBE, the Egyptian pound will freely float based on supply and demand. The Qatari market led the losing side, followed by Dubai and Abu Dhabi, with each going down by 4.0%, 0.6% and 0.25% respectively.

Interesting and volatile week coming up with all eyes on the US presidential election. Current market consensus is that a surprise Trump win will shock the market and cause a meltdown worse than Brexit while a Clinton win will settle the markets and possibly a small correction with the Clinton presidency priced in but overall the medium term trend will be upwards. Regional markets will follow the global cue with many investors waiting till Wednesday morning to make the next move.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,298.43 -0.60% -1.02% 4.68%
Abu Dhabi (ADSMI) 4,281.62 -0.25% -0.43% -0.60%
Saudi (SASEIDX) 6,060.46 2.09% 0.80% -12.32%
Kuwait (KWSE) 5,409.36 0.21% 0.15% -3.66%
Egypt (EGX30) 8,810.51 5.60% 5.06% 25.76%
Qatar (DSM) 9,955.99 -4.00% -2.13% -4.54%
Bahrain (BHSEIDX) 1,144.37 -0.33% -0.39% -5.88%
Oman (MSM30) 5,462.14 -0.64% -0.35% 1.03%
TR GCC (Reuters) 190.52 -1.94% -1.27% -2.02%
DJ MENA 464.73 -1.85% -2.17% -6.67%

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.