Beirut SE
Current year high: 1,111.39 Current year low: 912.21
> Review period: Closed April 25 at 924.62 points Period Change: -1.1%
With government formation stuck for a third month, the BSE failed to excite and the market finished the review period treading negative territory. Shares of actively-traded Bank Audi shed 3.7% and Byblos shares inched up 1% during the review period. Shares of market cap leader Solidere moved about as much as the Lebanese cabinet. Bank of Beirut reported a 1.38% YoY increase in Q1 2011 net profits to $20 million. For good news, the Lebanese central bank and Washington both denied rumors of US Treasury Department hunting more Lebanese banks for money laundering.
Amman SE
Current year high: 2,575.47 Current year low: 2,149.11
> Review period: Closed April 26 at 2,202.38 points Period Change: 1.23%
After hitting a multi-year low in March, Jordanian stocks rebounded in early April as investors were lured by lower valuations and positive earnings news. Political unrest seemed to subside after King Abdullah promised reforms, but security and economic concerns rose as Syria shut its border and a pipeline carrying natural gas from Egypt through Israel was set sabotaged, costing Jordan $4 million a day. Amidst all the unsettling news from the neighborhood, Al Rajhi Cement Company issued a $120 million seven-year Sukuk, the first Jordanian firm to use Islamic finance for funding.
Abu Dhabi Exchange
Current year high: 2,833.09 Current year low: 2,471.70
> Review period: Closed April 26 at 2,689.3 points Period Change: 3.15%
Waves of strong economic growth and abundant liquidity continued to wash positively across ADX stocks. Although the ADX index closed the review period still down half a percent for the year to date, its April performance was second only to neighboring DFM. While National Bank of Abu Dhabi fell victim to higher provisioning, Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank posted strong results, driving the banking sector index up 6.4%. Real estate companies Aldar and Sorouh were among the most traded stocks, rising 3.3% and 10.6% respectively.
Dubai FM
Current year high: 1,859.96 Current year low: 1,352.24
> Review period: Closed April 26 at 1634.75 points Period Change: 5.06%
After a slight pause at the end of March, DFM index led MENA financial markets higher in April despite a brief gasp over disappointing first-quarter earnings by Emaar Properties, the market’s heavyweight. Positive results helped leading bank Emirates NBD finish our review period up 30% and support the benchmark index. Investors were optimistic about the possibility of the DFM finally winning emerging market status from MSCI. Being in the black and having Fridays off, the DFM crowd at the end of April was all primed to focus on Buckingham Palace and the royal wedding.
Kuwait SE
Current year high: 7,309.70 Current year low: 6,134.60
> Review period: Closed April 26 at 6,493.5 points Period Change: 3.14%
For Kuwait’s investor community, April was a month with a somber note due to the death of Nasser al-Kharafi, the Kuwaiti billionaire and chairman of Kharafi Group with significant interests in companies ranging from KFC franchisee Americana to NBK and telco Zain. Zain and NBK are the KSE’s two market cap leaders. The banking sector closed our review period up 6.14%, as NBK reported 6.2% higher Q1 2011 net profit, sending its shares up 8.8%.
Saudi Arabia SE
Current year high: 6,916.79 Current year low: 5,323.27
> Review period: Closed April 25 at 6,684.7 points Period Change: 1.86%
Share prices of companies listed on Tadawul continued to steadily increase, although with slowing momentum. The usual suspect for driving the SSE action, as in the past 18 months, remains the petrochemical sector, which grew net profits by 51% in Q1 2011, according to a Jadwa report. Petrochem shares were up 4.9% during our review period, led by market heavyweight SABIC at 6.4%. However, earnings at non-petrochemical companies rose only 3.7%, according to Jadwa.
Muscat SM
Current year high: 7,027.32 Current year low: 6,058.11
> Review period: Closed April 26 at 6,327.49 points Period Change: 2.6%
Trading activity was limited on Oman’s stock market in April but the benchmark index gave a bit of an Alpine performance in the review period, losing some gains from the first half of the month. First quarter results at Omani banks came in strong with BankMuscat and NBO, the country’s two largest banks, posting respective 13.5% and 17% YoY increases in net profits. Investor sentiment appeared still wobbly after the Sultanate’s roller coaster first quarter that saw several protests and strikes in various companies. However, investor moods appeared pacified by announcements of dividend distributions.
Bahrain Bourse
Current year high: 1,591.94 Current year low: 1,361.19
> Review period: Closed April 26 at 1,400.27 points Period Change: -1.71%
Bahrain stocks continued to suffer from the fallout of the ongoing protests, although foreign banks in the country have denied rumors that some are planning to relocate. The expulsion of an Iranian diplomat has further escalated Bahrain’s war of words with Iran whose testy reactions pose a bigger risk to regional stability than the UK press’s badmouthing of the Bahraini Royal Family. Investors took a breather from the distribution of $118.5 million in dividends by Al Baraka Bank Group. Bank share prices seesawed during the month, with NBB dropping 8.4% during the review period.
Qatar SE
Current year high: 9,242.63 Current year low: 6,647.18
> Review period: Closed April 26 at 8,441.91 points Period Change: -0.17%
The Qatar Exchange desert market rally that started in early March wound down in mid-April, the benchmark index skidding into the red by the end of our review period. Despite strong economic growth expectations on a record budget and the bullish credit and stock ratings of Qatari banks, business optimism entered the second quarter of 2011 on a low note. While Qatar National Bank and Commercial Bank reported strong results, investor unease was fueled by below estimate profits at Qatar Islamic Bank and by layoffs at Barwa Real Estate, the biggest listed property developer in Qatar.
Tunis SE
Current year high: 5,681.39 Current year low: 4,058.53
> Review period: Closed April 25 at 4,235.36 points Period Change: -3.37%
Stocks listed on the Tunis stock exchange are still paying the price of freedom, although the second half of April witnessed an uptick in trading volumes and showed signs of a return of investor confidence. However, the uncertain political situation led Capital Intelligence, the global credit agency, to assign a negative outlook for Banque Internationale Arabe de Tunisie, which holds 10% of the sector’s assets. Going forward, stock exchange activity may remain subdued as the country gears up for the July elections and amid continued military operations in neighboring Libya.
Casablanca SE
Current year high: 13,397.47 Current year low: 11,499.64
> Review period: Closed April 26 at 12,017.17 points Period Change: -1.29%
Limited trading activity on the Casablanca Stock Exchange was not reflective of the political mood in Morocco, which appears to have escaped the networking grasps of the North African uprisings. Following peaceful protests across the country, the Moroccan government quickly agreed to increase public sector payrolls and the minimum pension. While the royal family was invited to London for social obligations, its investment holding SNI talked its 2010 profits down.
Egypt SE
Current year high: 7,500.56 Current year low: 4,951.00
> Review period: Closed April 26 at 4,996 points Period Change: -8.57%
Stocks continued to slide on the Egyptian exchange as companies calculate how heavy the protests of the past few months will weigh on 2011 earnings. But as the high drama of February was being replaced by talk of a Mubarak court appearance, the Egyptian economy and the exchange are set to benefit from a prospective $1 billion Kuwait Investment Authority Fund for Egypt and from a potential $6 billion IMF loan. In addition, the country is looking to hike revenues by renegotiating foreign gas deals.
