Aditya Pugalia - Analyst
Published Date: 13 April 2017
In March 2017, GCC equity markets closed lower for a second consecutive month with the Bloomberg GCC 200 index losing -1.4%. The Tadawul (+0.4%) and the KWSE (+3.6%) were exceptions. The DFM index (-4.1%) and the Qatar Exchange (-2.9%) led the decline.
The DFM saw the largest inflow from non-GCC investors in the last seven months. They bought stocks worth AED 340mn. Cumulatively, the DFM has received inflows of AED 410.7mn in Q1 2017. In Q1 2017, Emaar Properties was the biggest beneficiary with inflows of USD 102.4mn while Air Arabia saw outflows of USD 39.5mn.
The Qatar Exchange continued to see interest from foreign investors with inflows for a tenth consecutive month. In March, foreign investors were net buyers to the tune of QAR 1.58bn. The inflows was higher than average on account of the second part of the FTSE trade. Cumulatively, the Qatar Exchange in Q1 2017 has received inflows of QAR 2.6bn. Qatar International Islamic Bank was the biggest beneficiary with inflows of USD 145.8mn in March.
The Tadawul saw inflows for a third consecutive month with foreign investors buying stocks worth SAR 219.5mn. In terms of stocks, Al Rajhi Bank saw inflows of c. USD 55mn while Alinma Bank saw outflows of c. USD 30mn.
With the exception of the Qatar Exchange volumes declined across the board in March. The value traded on the DFM and the Tadawul dropped -39.0% m/m and -14.0% m/m respectively. On the Qatar Exchange, it increased +52.0% m/m. However on y/y basis, volumes in Q1 2017 increased across markets with the exception of the Tadawul where it dropped -16.0%.