In August 2017, GCC equity markets recouped losses of the previous month.

In August 2017, GCC equity markets recouped losses of the previous month with the MSCI GCC Countries index adding +1.31%. Gains were primarily led by the Tadawul (+2.3%) and the KWSE index (+0.6%) as investors built position ahead of the FTSE decision later this month. The Qatar Exchange was a notable underperformer with losses of -6.4%.

The DFM saw inflows from non-GCC investors as they bought stocks worth AED 38.9mn. GCC investors were net sellers to the tune of AED 96.2mn. Damac Properties was the biggest beneficiary with inflows of USD 24.6mn.

The Qatar Exchange continued to see outflows from foreign investors for a fourth consecutive month. Outflows accelerated in August following a lull in July 2017 as hopes of a quick reconciliation faded away. Foreign investors sold stocks worth QAR 240.4mn in August 2017 to take the total outflows to QAR 1.64bn since June 2017. Qatar National Bank saw outflows of USD 10.1mn.

The Tadawul saw inflows from foreign investors of SAR 650.5mn in August 2017 to take the aggregate year to date inflows to SAR 2.15bn. Al Rajhi Bank saw inflows of SAR 144.3mn. The interest from foreign investors can be partly put down to an impending decision from FTSE on including the index into its wider EM index.

With the exception of the Tadawul, volumes declined on a m/m basis in August 2017. The value traded on the DFM and the Qatar Exchange dropped -28.0% m/m and -33.0% m/m respectively. However on y/y basis, volumes declined the most on the Tadawul with average daily value traded dropping -28.0% y/y in the first eight months of 2017.

Average Daily Value Traded (USDmn)

Source: Emirates NBD Research

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