Gulf markets end 2017 on mixed note; Qatar falls 18%

GCC stock markets closed last year on a mixed note, with the Qatari market the worst performer, driven by a diplomatic rift with other countries in the region.

The Qatar Stock Exchange (QE) fell 18.3 percent, its weakest performance since 2008, data compiled by Argaam showed.

Muscat Securities Market (MSM) came second, slumping 12.7 percent, followed by Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), which dropped 4.6 percent and 3.3 percent respectively.

Meanwhile, Kuwait Stock Exchange (KSE) was the top gainer, climbing 11.5 percent, followed by Bahrain Bourse (BHB) (7 percent) and the Saudi Stock Exchange (0.2 percent).

Most GCC markets started the new year on a higher note, led by KSE, which leapt 19 percent. Meanwhile, Tadawul dropped 2 percent during yesterday’s trading session.

In Q2 2017, the GCC bourses with the exception of Tadawul reported declines due to lack of fresh catalysts, the slump in oil prices to below $50/bbl, the holy month of Ramadan, as well as summer vacation which is characterized by weak activity.

The Saudi bourse rose 6 percent in the second quarter of last year, after Kingdom was added to the MSCI emerging market watch list.

In Q3 2017, Gulf bourses extended their downtrend, with the exception of DFM and MSM. Tadawul also retreated, ending the third quarter 2 percent lower.

Most markets remained weak in the last quarter, but Bahrain Bourse and QE rose 4 and 3 percent respectively.

GCC markets recorded a combined turnover of $310.4 billion, down 21 percent year-on-year (YoY) in 2017.

Tadawul’s trading volumes tumbled 28 percent YoY, followed by DFM (down 15 percent to $31.2 billion).

Meanwhile, the aggregate market capitalization of GCC bourses edged up 1 percent YoY to $934.2 billion last year.

Bahrain Bourse recorded the lowest price-to-earnings ratio (P/E) of 9x, while Tadawul traded at a P/E of 15.6x last year.

Amongst the GCC’s top 20 blue chip stocks, Saudi Arabian Mining Co. (Maaden), Kuwait Finance House (KFH) and National Commercial Bank (NCB) reported higher market capitalization.

Meanwhile, market capitalization of Jabal Omar Development Co. (JODC) and Almarai Co. dropped 20 percent each last year.

Tadawul led other GCC markets in terms of top gainers. The list included nine Saudi companies, six Kuwaiti firms, two from Dubai, and one each from Abu Dhabi, Muscat and Oman.

Muscat’s Oman Fisheries Co. came first, surging 141 percent. It was followed by Dar Al Arkan Real Estate Development Co. and Al Madar Finance & Investment Co. which soared by 134 percent and 108 percent consecutively.

* Price in currencies of each country.

Stocks which recorded the biggest declines in 2017 included the Mediterranean and Gulf Insurance and Reinsurance Co., which plunged 59 percent, Saudi Industrial Export Co. (58 percent), in addition to four Kuwaiti firms, three each from Qatar and Dubai, and two from Muscat.

* Price in currencies of each country.