Strong oil prices expected to have a positive effect on trading activities – Al Masah Capital Weekly Report


For the second week in a row, tech companies powered US markets’ with APPLE’s stellar earnings driving the markets to another set of all-time highs. The renewed expectations on OPEC extending its production cuts led oil prices to two year highs with crude reaching USD62.07 per barrel and WTI at USD55.64 per barrel.

For the regional markets, five out of the eight indices ended the week on a positive note while the remaining three were net losers. Egypt came on top with +2.6% gains over the week on the back of improving economic indicators and a recent IMF declaration that Egypt’s economic growth is driven by a “broad-based” recovery across industries.

Oman, Saudi, Bahrain and Qatar each advanced by +1.6%, +0.7%, +0.4% and +0.2% respectively.  Kuwait was the worst performer among its peers with a -1.1% losses over the week, followed by UAE markets with Dubai losing -0.8% and Abu Dhabi -0.1%.

Going into the new week, positive news-flow focusing on Emaar Development IPO (which was covered fully on the first day of the offering), and strong oil prices should have a positive effect on trading activities, although the volatile regional geo-political dynamics can always throw up a surprise.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,622.24 -0.79% -0.37% 2.59%
Abu Dhabi (ADSMI) 4,465.15 -0.06% -0.32% -1.79%
Saudi (SASEIDX) 6,956.51 0.66% 0.32% -3.52%
Kuwait (KWSE) 6,548.42 -1.13% 0.53% 13.92%
Egypt (EGX30) 14,319.34 2.61% -0.16% 15.99%
Qatar (DSM) 8,146.23 0.22% -0.23% -21.95%
Bahrain (BHSEIDX) 1,282.85 0.43% 0.48% 5.11%
Oman (MSM30) 5,040.19 1.65% 0.59% -12.84%
TR GCC (Reuters) 193.10 -0.72% -0.16% -4.69%
DJ MENA 526.67 0.00% 0.26% 5.77%

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.