Beirut SE (one month)
Current Year High: 1,629.74 Current Year Low: 705.56
The Beirut Stock Exchange (BSE) index started the month of June with both eyes on the parliamentary elections. Following the success of the March 14 coalition, the market was let loose, rising 21.66% through June 21 to reach 1,007.34 points. Trading was dominated by Solidere A shares which rose 29.92% and Solidere B shares at 27.79%, while Bank Audi and BLOM Bank also recorded strong gains of 15.49% and 14.96%, respectively. However, market activity slowed during the third week as markets awaited cues from political factions about the formation of a new cabinet. Holcim Liban and Byblos Bank were the only two listed companies to decline in value, falling 4.81% and 4.12%, respectively. In corporate news, Solidere announced an 18% increase in its 2008 net profits and provided a bright view of the upcoming few months. Still, as foreign investors continue to diversify, the steady decline in the company’s shares on foreign exchanges appears to have contributed to the muted domestic investor response to the company’s strong earnings.
Amman SE (one month)
Current Year High: 4,820.24 Current Year Low: 2,550.70
The Amman Stock Exchange (ASE) lost 1.38% to reach 2,825.18 points, suffering from the decline in all market sectors, especially industry and banking, which were down 4.35% and 3.66% for the month through June 21. The banking sector took a hit from profit-takers, while mining companies suffered from pessimistic news by a major European potash producer concerning the outlook for the fertilizer industry. The highest return stocks were Al Kafaa Financial Investment and Trading (60%), Awtad for Financial and Real Estate Investments (55.66%), and Winter Valley Tourism Investment (39.47%). The worst performing stocks were led by Bin Dar for Trade and Investment (-35.78%), General Investment Company (-29.83%), and International Brokerage and Financial Markets (-23.85%). On a macroeconomic level, the government reported growth of 3.2% year-over-year in the first quarter of 2009 and expects the full-year number to reach 3.5% to 4%. Net foreign investments dropped 45% during the first five months of 2009 compared to the same period in 2008, and the general industrial production index fell 4.5% year-over-year in the first four months of 2009.
Abu Dhabi SM (one month)
Current Year High: 5,096.50 Current Year Low: 2,136.64
Profit-taking took its toll on the Abu Dhabi Securities Exchange (ADX), but to a lesser extent than other GCC markets, as the general index returned 2.68% through June 21 to reach 2751.28 points. The banking and finance sector was behind part of the sell-off in the middle of June as investors grew wary of possible undisclosed losses. However, banking stocks quickly recovered as sentiment shifted towards increased confidence in the government’s ability to support the economy. The consumer sector drove the market, leaping 10.98%, followed by banking stocks which rose 6.56%. Energy (-8.49%), industrial (-4.4%), and real estate (-2.1%) were the worst performing sectors after leading the market surge in May. Oman and Emirates Investment Holding led the market with a 46.55% gain, ahead of Abu Dhabi Aviation (27.84%) and Abu Dhabi National Hotels (25%). Several banking stocks also occupied the top spots, including The National Bank of Ras Al Khaimah (20%), United National Bank (19.76%) and Bank of Sharjah (16.67%).
Dubai FM (one month)
Current Year High: 5,540.17 Current Year Low: 1,433.14
Despite significant profit-taking, the Dubai Financial Market (DFM) index managed to record a 3.48% gain and closed at 1,943.36 points on June 21. Emaar Properties first dominated the news at the DFM after Saudi Kingdom Holding announced that the Dubai-based real estate giant was in charge of the $27 billion development and supervision contract to build Jeddah Kingdom City. Emaar later clarified that its role in the project remains conditional and would not include any capital investments, pushing the market down as its shares lost 5%, after rising more than 7% during the previous day. Shuaa Capital’s dispute with Dubai Banking Group over the conversion of mandatory convertible bonds also added to volatile market performance, with Shuaa ranking last in stock return and losing 23.33% during the review period. Utilities, up over 40% by June 14 before profit-taking, were the best performing sector on the DFM, adding 16.46% in less than one month, while the materials (-5%) and telecom (-2.88%) shed the most value. Dar Al Takaful led the market in gains, rising 46.88%.
Kuwait SE (one month)
Current Year High: 15,654.80 Current Year Low: 6,391.50
The rally in Kuwait continued into the first week of June, but the Kuwait Stock Exchange (KSE) index flattened out to end the review period up 0.97%. Growing confidence over the implementation of the Financial Stability Enhancement Plan following the parliamentary elections added steam to the market rally, especially during the first week. The broad-based rally in Kuwait was driven by non-Kuwaitis and industrial sectors which rose 3.16% and 3.13%, respectively. The only sectors to decline during the month were the parallel market (-1.59%), followed by real estate (-1.42%), and food (-0.63%). However, several real estate stocks were among the top performing companies, including Grand Real Estate Projects Company (+25.37%). The top performing stocks were Hayat Communications (47.06) and Advanced Technology (45.88%), while the worst performers were Arab Insurance Group (-44.26%) and Al Mosawat Holding (-28%). Global Investment House rose 10.7% after announcing bondholders had agreed to extend the maturity of $69.44 million worth of bonds.
Saudi Arabia SE (one month)
Current Year High: 9,581.34 Current Year Low: 4,130.01
The Saudi Stock Exchange (TASI) index was down 2.57% to 5,741.83 points through June 21, following three weeks of volatile trading. June started with a tough-to-beat three month rally which saw the TASI leap 19.6% in April followed by a 4.42% gain in May. Still, the month started strong on the back of positive economic news from China and the United States, indicating the global recession may be nearing its end. In a move to boost bank lending, the Saudi Arabian Monetary Agency cut its key reverse repurchase rate by 25 basis points to 0.25%. However, profit-taking and a decline in oil prices put pressure on stocks in the latest week, with selling concentrated around market heavy-weight banks and petrochemicals. The insurance sector was the biggest loser, shedding 6.75% of its value, while the hotels and tourism (+5%) and the construction (4.3%) sectors had the highest return during the review period. The best performing stock was newly-listed Weqaya Takaful Insurance and Reinsurance Company (+250%), followed by Abdullah Al Otheim Markets Company (41.98%).
Muscat SM (one month)
Current Year High: 11.865.35 Current Year Low: 4,223.63
The Muscat Securities Market (MSM) index increased 4.02% to 5,721.61 points through June 21, driven mostly by the industry sector which recorded a leap of 13.8%. The services and insurance sector followed with 6.15%, ahead of banking and investments which lagged with only 1.95%, on continued concern over the banking system’s exposure to Saad Group and Al Gosaibi Group. The market received a boost from the government’s decision to revamp its tax system, ending discriminatory practices of applying higher tax rates to foreign companies. The top performers were Oman Chemical Industries Company which rose 69.36% and Al Jazeera Steel Products Company, up 41.78%. At the bottom of the list was The Financial Corporation Company which lost 30.69% of its value and Al Ahlia Converting Industries, which shed 18.22%. Oman’s economy is expected to slow significantly from 7% to 3% in 2009, as a result of lower hydrocarbon export revenues, but higher corporate tax revenues are seen filling part of the gap created by the lower oil prices.
Bahrain SE (one month)
Current Year High: 2,868.62 Current Year Low: 1,572.19
The Bahrain Stock Exchange (BSE) index continued its lackluster performance for the third consecutive month. The index started the month with several days of selling, to reach 1,582.12 points, its lowest level since April 28, before recovering to 1628.64 points, up 0.4% for the month through June 21. The hotels and tourism sector led the market, returning +3.19%, followed by services (+1.17%) and banking (+0.91%), while the insurance sector suffered a massive 13.1% drop. Only seven stocks were in the green for the month through June 21, with United Gulf Bank and Nass Corporation maintaining their top two positions from May with gains of 20.84% and 16.82% respectively. During the review period, Investcorp Bank announced the purchase of commercial real estate debt in the US worth $900 million, and the Central Bank of Bahrain placed $750 million in the first sovereign long-term Sukuk offering in 2009.
Doha SM (one month)
Current Year High: 12,169.16 Current Year Low: 4,230.19
After leading GCC markets in May, the Doha Securities Market (DSM) index, recently named Qatar Exchange, fell 7.2% through June 21 to reach 6,473.07 points, thus reversing the positive direction of the previous three months and falling to the bottom of GCC market performance. Lower oil prices and retreating global equities weighed in on the exchange. Only five stocks were in the green for the month, including Qatar Cinema and Film Distribution Company (7.14%), Qatar Telecom (6.44%), and Gulf Holding Company – Qatar (1.6%). Banks and real estate companies nosedived, and the two best performing stocks in May were the worst performers in June as Barwa Real Estate fell 18.18% and The Commercial Bank of Qatar shed 17.24%. All sectors were down for the month, with banking (-8.1%) leading the decline, followed by services (-7.96%). The government’s decision in May to purchase $4.1 billion in real estate investments to free up capital for lending still provided a minimum level of support for banks.
Tunis SE (one month)
Current Year High: 3,614.57 Current Year Low: 2,836.64
After hitting some bumps in May, the Tunisia Stock Exchange Index (Tunindex) advanced 5.52% to 3,600.52 points on June 21, posting a modest loss on only one trading day during the month. Tunisia benefited from the abundance of positive news including a recent report by the World Economic Forum that showed Tunisia was the most competitive African country, praising its institutions, transparent policies, and efficient government. Only 9 of 53 stocks declined during the review period, with the worst performers being L’Accumulateur Tunisien ASSAD (-12.85%), Tuninvest – Sicar (-7.22%), Astree Assurances (-7.14%), and Tunisair (-3.1%). On the other hand, the best performing stocks added considerable value, with Société Tunisienne de Verreries gaining 50.13%, followed by Société Immobilière Tuniso-Séoudienne at 43.41%.
Casablanca SE (one month)
Current Year High: 14,504.58 Current Year Low: 9,405.86
The Casablanca Stock Exchange (CSE) index had a good showing during the month through June 21, rising 3.53% to reach 11,637.39 points. The CSE posted strong gains during the days following the global sell off in the second week of June, recovering by 4.8% to a 2009 peak of 11,730 points before submitting to profit-taking. Transportation, mining and electrical and electronic equipment remain the best performing sectors in 2009, up 59.77% and 57.81% respectively, while construction and building materials occupy the bottom of the list after losing 8.54%. The best performing stocks were dominated by electronic companies led by Hightech Payment Systems (26.8%), while the lowest returns were recorded by Société Nationale de Sidérurgie (-9.68%) and Delattre Levivier Maroc (-7.24%). Major news during June included the announcement by Renault that it will begin construction on a new manufacturing plant in Morocco in September, generating over 6,000 direct jobs.
Egypt CASE (one month)
Current Year High: 10,147.83 Current Year Low: 3,389.31
The majority of stocks on the Cairo and Alexandria Stock Exchange (CASE) saw a healthy increase in value during the month up to June 21, driving the CASE index up 2.42% to reach 6069.62 points. The travel and leisure sector index rose the most, adding 28.9% to its value, followed by real estate (17.1%). The telecom sector fared the worst, losing 6.8% during the review period, on continued pressure from the dispute between France Telecom and Orascom over the French operator’s interest in buying additional shares in Egypt’s Mobinil. As a result, Orascom Telecom lost 9.47% to rank as the fourth worst performer during our review period, ahead of National Bank for Development (-9.54%), Helwan Cement Company (-11.44%), and Al Watany Bank of Egypt (-12.12%). The best performing stocks, however, posted massive gains, led by National Company for Housing for Professional Syndicates (72.01%), United Arab Shipping Company (62.56%), and El Nasr Clothing and Textile Company (56.98%).
