Technical trading expected to remain one of the main drivers for coming week’s activities – Al Masah Capital Weekly Report


Fed’s decision to increase rates was the major news trigger impacting global and regional markets last week. US markets regained their losses after the Fed action and Dow Jones and S&P500 both ended the week modestly up by .06% and 0.24% respectively.

Oil managed to keep its position above the USD 50 pb, ending last week at USD51.76 pb, up 0.76% compared to the earlier week, however the supply/demand picture remains precarious for OPEC members shale’s resilience means an extension of the production cuts for another 6 months may be on the cards.

On the regional front, four out of the eight major indexes ended the week on a positive note with Bahrain coming on top with an increase of 1.6%, followed by Kuwait, Egypt, and Saudi Arabia each rising by 1.5%, 1.0% and 0.1% respectively. Oman, Qatar, and Abu Dhabi ended the week on a negative note with each going down by 2.1%, 1.0% and 0.7% respectively.

Despite low oil prices and cuts in oil production, the Saudi economy will gradually recover, supported by government spending which would improve the banking sector’ liquidity and funding conditions. While real GDP is expected to grow to contract by 0.2% in 2017, increased government spending and projects to diversify economic output will support a gradual recovery of the non -oil economy.

Dubai was the only market ending the week on a flat note. UAE markets recovered well in the last 2 trading sessions of the week fueled in part by technical buying. Technical trading is expected to remain one of the main drivers for this coming week’s activities, with UAE and Qatar sitting around key support and reversion levels.  

March so far has preferred the selling of February rather than the optimistic buying of January so the last 2 weeks of this month will show if that particular trend is still intact.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,521.33 0.03% -3.00% -0.27%
Abu Dhabi (ADSMI) 4,424.93 -0.73% -2.79% -2.67%
Saudi (SASEIDX) 6,921.60 0.07% -0.73% -4.01%
Kuwait (KWSE) 6,810.71 1.48% 0.41% 18.49%
Egypt (EGX30) 12,983.99 1.02% 8.76% 5.18%
Qatar (DSM) 10,361.03 -1.01% -3.19% -0.73%
Bahrain (BHSEIDX) 1,374.63 1.56% 1.85% 12.63%
Oman (MSM30) 5,668.33 -2.13% -1.93% -1.98%
TR GCC (Reuters) 204.39 -0.90% -2.72% 0.88%
DJ MENA 518.82 -0.36% -1.45% 4.19%

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.