Beirut SE
Current year high: 1,200.49 Current year low: 939.02
> Review period: Closed Oct 22 at 956.75 Points Period Change: -0.8%
The MSCI Lebanon index close on Oct 22 indicated that Lebanese stocks are still undervalued and the index shows a drop of 14.3% when compared with the start of 2010. However, by the methodology of BLOM Bank’s BSI, the year-to-date loss in the market is lower, at 8.3%. Real estate firm Solidere closed in the $18.70 range, which is below what analysts widely agree to be the scrip’s potential. Slight upward movements of banking stocks in the second half of the review period were notable but hardly reflected the leading banks’ strong nine-month results.
Amman SE
Current year high: 2,648.36 Current year low: 2,223.30
> Review period: Closed Oct 21 at 2,324.40 Points Period Change: 0.8%
Small gains on the Amman Stock Exchange were enough for a second consecutive positive performance in the ASE index. However, there were more losers than gainers in the monthly statistics of share price changes. The banking index moved in tune with the general index to the point of the performance lines being practically indistinguishable. The ASE’s industrial sub-index, on the other hand, outperformed the benchmark by more than 4 percentage points, while insurance underperformed by more than 5 percentage points. Jordan Phosphate Mining achieved a 14.4% gain.
Abu Dhabi SM
Current year high: 3,096.93 Current year low: 2,467.04
> Review period: Closed Oct 21 at 2,807.50 Points Period Change: 5.0%
With a repeat performance of its September gains, the Abu Dhabi Exchange was the strongest and steadiest climber among GCC bourses in the review period. After languishing for five months, the ADX index crossed into the black on Oct 13 when compared with the start of 2010. Market leading sectors of telecommunications, construction, and energy showed index increases of between 8% and 9%. Arkan Building Materials jumped 39% higher, Green Crescent Insurance leapt even more at 40.4%. Etisalat, the region’s largest telecoms firm by market cap at over $25 billion, gained 9%.
Dubai FM
Current year high: 2,286.26 Current year low: 1,461.80
> Review period: Closed Oct 21 at 1743.98 Points Period Change: 3.6%
Trading sideways from Oct 10 to the end of the review period, the Dubai Financial Market cooled its heels after following up on impressive September gains with a 70-point rise in early October. Sector indices generally were in line with the slower trend, except for telecommunications whose 19% increase was outright euphoric and well ahead of runner up real estate and construction with 3.9%. Dubai’s own telecoms firm, du, was the best performing scrip on the DFM; at Oct 21 close it represented $3.8 billion market cap, the DFM’s fifth highest.
Kuwait SE
Current year high: 7,575.00 Current year low: 6,319.70
> Review period: Closed Oct 21 at 6944.50 Points Period Change: -0.6%
Turnover on the Kuwait Stock Exchange showed significant increases in October that were more than double of the value of shares traded in comparable periods in June/July. But the KSE could not sustain index levels above the 7,000 points, which it reached intra-month. Banking outperformed the market with a 5% increase in the sector index. Hits Telecom was the KSE’s top gainer at 34% but the big telecoms stock story is the prospective sale of 46% of Zain Group to the UAE’s Etisalat.
Saudi Arabia SE
Current year high: 6,929.40 Current year low: 5,760.33
> Review period: Closed Oct 23 at 6,286.97 Points Period Change: -1.6%
After trading sideways early in the month, the Saudi Stock Exchange’s TASI withdrew from the 6,400 points line in a week-long slide of nearly 200 points. Losing stocks outnumbered gainers in the review period. Construction and real estate development led the market lower while the sector indices for petrochemicals and telecoms showed gains of 3% and 1.6%. Sabic reported strong profit improvement in Q3 and traded above SAR 92 ($24.53) for the first time since June.
Muscat SM
Current year high: 6,933.75 Current year low: 5,968.36
> Review period: Closed Oct 21 at 6,542.17 Points Period Change: 1.1%
Index gains on the Muscat Securities Market slowed in the review period when compared with September but the trend remained positive. The industrial sector dragged but banking moved in range with the benchmark index. The services and insurance sub-index was the main gainer, closing up 4.3%. BankMuscat and Omantel, the MSM’s two largest companies by market cap, traded sideways. Telecoms operator and MSM newbie Nawras said it received good institutional demand for its IPO but extended the subscription period by one week to draw in more retail investors.
Bahrain SE
Current year high: 1,605.98 Current year low: 1,361.19
> Review period: Closed Oct 21 at 1,465.39 Points Period Change: 1.4%
While the Bahrain Stock Exchange benchmark index moved a notch into positive territory for the year-to-date, the overall theme for the BSE in 2010 may turn out to be rigor more than vigor. Banking and investment sector indices were on the plus side in the review period, as were hotels. The services sector index dipped lower at the end of the review period as telecoms operator Batelco reported 24% lower Q3 net profit. Sharia-compliant Gulf Finance House proposed a restructuring consisting of consolidation of shares, reduction in capital, and issuance of a convertible Murabaha.
Doha SM
Current year high: 7,830.18 Current year low: 6,502.93
> Review period: Closed Oct 21 at 7,728.00 Points Period Change: 0.4%
Despite the small gain of the Qatar Stock Exchange benchmark index in the review period, the MENA country with the strongest economic growth expectation in 2010 continues to see its bourse outperform its regional competitors with an 11% index gain for the year to date. The index scaled a new 12-month high on Oct 11. At a price to earnings ratio of 11.04 times, the QSE still compares favorably with KSE and Tadawul. The banking sub-index outperformed the general index. Although showing an uptrend at the end of the review period, the insurance index was the market’s underperformer.
Tunis SE
Current year high: 5,681.39 Current year low: 4,021.14
> Review period: Closed Oct 22 at 5,393.19 Points Period Change: -4.6%
Whether Tunisian investors felt like shaking things up a bit or just sensed that all bubbles have to start deflating one day, the Tunindex took its cue from the season to finally fall in October. The trend engulfed most stocks, with filter manufacturer GIF rising 17.4% as notable upward outlier. Market cap leaders Poulina Group and Banque de Tunisie gave up 5.4% and 6.5% of their share prices, respectively. Modern Leasing, an affiliate company of a government-controlled housing bank, has invited subscription to a $6.1 million IPO from Oct 25 to Nov 8.
Casablanca SE
Current year high: 12,457.59 Current year low: 9,997.56
> Review period: Closed Oct 22 at 12,325.96 Points Period Change: 3.6%
Market players on the Casablanca Stock Exchange found an appetite for new growth after the MASI’s flat performance in the previous review period. The index reached a 5-month high on Oct 21 and closed the review period up 18% on the start of 2010. Regionally, that performance is second only to the Tunindex’s 25.7% year-to-date rise. Few stocks softened in an overall optimistic picture. Market cap leaders Maroc Telekom and Attijariwafa Bank added 2.5% and 6.4%, respectively.
Egypt CASE
Current year high: 7,603.04 Current year low: 5,850.00
> Review period: Closed Oct 21 at 6807.00 Points Period Change: 2.6%
Trading on the Egyptian Stock Exchange may have increased demand for Scopolamine for investors with sensitive stomachs for market volatility. The EGX 30 index experienced dizzying ups and downs corresponding to hopes and doubts over a merger deal between telecoms operators OTH and Russia’s VimpelCom. OTH shares dropped 13% on possible nationalization of its Algerian unit Djezzy after rising 10% earlier in October. However, the majority of stocks stayed on the gaining side.
