Aditya Pugalia - Analyst
Published Date: 10 May 2017
In April 2017, GCC equity markets closed lower for a third consecutive month with the Bloomberg GCC 200 index losing -0.7%. The Tadawul (+0.2%) was a notable exception in what was a broad based decline. Weakness in oil prices also weighed on broader investor sentiment. ICE Brent futures declined -2.1% in April.
The DFM saw inflows from non-GCC investors for a second consecutive month. They bought stocks worth AED 115.6mn. Emaar Properties was the biggest beneficiary with inflows of USD 27mn while Union Properties saw outflows of USD 10mn.
The Qatar Exchange continued to see interest from foreign investors with inflows for an eleventh consecutive month. However, the inflow in April was the smallest over the same period with foreign investors buying stocks worth QAR 41.1mn. It should be compared with inflows of QAR 1.6bn in March 2017. Masraf Al Rayan saw inflows of USD 11.6mn as the bank announced its intention to be part of a three-way consolidation in the sector.
The Tadawul saw outflows for the first time in four months with foreign investors selling stocks worth SAR 359.5mn. National Commercial Bank was the biggest beneficiary with inflows of USD 21mn as investors switched positions from Alinma Bank which saw outflows of USD 75mn.
With the exception of the Tadawul, volumes have improved on a y/y basis in first four months of 2017. The value traded on the DFM and the Qatar Exchange increased +2.0% y/y and +26.0% y/y respectively. However on m/m basis, volumes declined across markets with average daily value traded dropping -20.0% on the DFM and -55% on the Qatar Exchange.
GCC Equity Flow Monitor