Aditya Pugalia - Analyst
Published Date: 14 March 2017
In February 2017, GCC equity markets closed marginally lower with the Bloomberg GCC 200 index losing -0.23%. The Qatar Exchange (+1.0%) was a notable exception in what was a broad based decline across indices. The DFM index and the Tadawul dropped -0.3% and -1.8% respectively.
The DFM saw outflows for the first time in 2017. Non-GCC investors sold shares worth AED 142.8mn in February. In terms of stocks, Dubai Islamic Bank received inflows of c. USD 22mn while Air Arabia saw outflows of USD c. USD 24mn.
The Qatar Exchange continued to see interest from foreign investors. It could partly be attributed to inflows from active funds tracking the FTSE EM index as the second trade date of mid-March 2017 approaches. Foreign investors bought stocks worth c. QAR 699mn in February 2017.
In terms of stocks, Industries Qatar received inflows of c. USD 22mn while Qatar Electricity & Water saw outflows of c. USD 14.5mn.
The Tadawul saw inflows for a second consecutive month with foreign investors buying stocks worth SAR 52.1mn. In terms of stocks, Al Rajhi Bank saw inflows of c. USD 36mn while Almarai saw outflows of c. USD 22mn.
With the exception of the Qatar Exchange volumes declined across the board in February. The value traded on the DFM and the Tadawul dropped -22.0% m/m and -17.0% m/m respectively. On the Qatar Exchange, it increased +24.0% m/m. However on y/y basis, volumes increased across markets with the exception of the Tadawul where it dropped -9.0% in the first two months of 2017 compared to the average of 2016.