Beirut SE
Current year high: 1,180.99 Current year low: 923.19
> Review period: Closed March 24 at 934.33 points Period Change: -0.28%
Beirut stocks inked an 18-month low on March 14, following a large demonstration in Beirut demanding Hezbollah’s disarmament. It also didn’t help that Premier-designate Najib Mikati remained unable to form a government. Still, stocks rebounded in the second half of the month following confirmations that no other banks in Lebanon would be targeted by the US Treasury Department following the merger of LCB and SGBL. Performance was mixed on the BSE, with Bank Audi ticking up 5.5% as Solidere and Byblos closed 2% and 2.1% lower, respectively.
Amman SE
Current year high: 2,648.36 Current year low: 2,149.11
> Review period: Closed March 24 at 2,182.48 points Period Change: -3.1%
In the absence of any notable supporting news, ASE stocks continued their trip south driven partly by political uncertainty as fresh protests in Jordan demanded reforms. The banking sector shed 2.7% during the review period, although Arab Bank, the exchange’s largest stock by market capitalization, inched up 0.2%. Other sectors were also weak, with mining and extraction down 3.5%, including a 2.4% decline by Arab Potash.
Abu Dhabi Exchange
Current year high: 2,925.42 Current year low: 2,471.70
> Review period: Closed March 24 at 2,632.95 points Period Change: 1.7%
A recovery in the real estate and construction sectors led the positive showing of the ADX during the review period, as Aldar and RAK Properties rose 12.3% and 14.3%, respectively. Some of the positive news that supported the upward trend in March came from Taqa which positively surprised markets with a 460% increase in 2010 profits on higher oil and gas prices. In addition, UNB announced a 10% dividend while NBAD approved a 30% cash dividend, reflecting confidence in the banking sector’s prospects.
Dubai FM
Current year high: 1,859.96 Current year low: 1,352.24
> Review period: Closed March 23 at 1,552.81 points Period Change: 10%
Stocks on the DFM staged a massive comeback in March, after Saudi authorities confirmed that the political and security situation was under control and appeased markets by buying stock through state-run pension funds and announcing large welfare spending plans. A boost also came when Arabtec postponed plans to raise capital, sending the builder’s shares up 25.3% during the review period. Investors found renewed confidence in the UAE’s political establishment and were buoyed by several earnings and dividend postings at Dubai Islamic Bank and Du, among others.
Kuwait SE
Current year high: 7,575.00 Current year low: 6,134.60
> Review period: Closed March 24 at 6,285 points Period Change: -3%
The quick quashing of dissent in Saudi Arabia only marginally supported stocks on the KSE as pessimistic investors quickly booked their gains on continued fears of political unrest in the Gulf. A wave of negative sentiment set in as many companies failed to submit their financial statements and were suspended from trading. However, the government offered some glimpses of hope by launching the long-awaited Capital Markets Authority.
Saudi Arabia SE
Current year high: 6,929.40 Current year low: 5,323.27
> Review period: Closed March 23 at 6,362.42 points Period Change: 7.1%
Investors went home March 2 bitten by a cold 15% decline in one week, but by March 12, a roaring 18.3% spike had restored the warmth to Tadawul, the region’s largest stock exchange. Positive comments by the Finance Minister, who called stocks tempting, sparked the rebound, but it was effectively the announcement of massive additional government spending worth an estimated $150 billion that overshadowed any possible political risk from demonstrations.
Muscat SM
Current year high: 7,027.32 Current year low: 6,058.11
> Review period: Closed March 24 at 6,402.17 points Period Change: 4.2%
Political tensions and a grim outlook for equities, coupled with some strong earnings news, were a recipe for jittery trading on the MSM. Kuwait-based Global estimated that MSM-listed firms saw their profits dip 17.8% in 2010, with Omani banks and petrochemicals coming out on top. As part of the strong performance, BankDhofar, the third-largest listed company, saw a record growth of 31% in 2010 profits, but rose only 3.2% during the review period. Several finance services stocks lost ground during the period, including Bank Sohar, down 9.8% since March 1.
Bahrain Bourse
Current year high: 1,605.98 Current year low: 1,361.19
> Review period: Closed March 24 at 1,422.57 points Period Change: -0.6%
Although out of sync with spiking neighboring exchanges, BB stocks remained steady considering the developing security situation in the country. GCC countries sent some 1,500 Saudi-led troops to Bahrain, widening the circle of political and civil confrontation. To make things worse, S&P downgraded counterpart ratings on several banks including AUB and Arab Bank, citing risk of additional pressure on the sovereign. On the bright side, the GCC decided to establish a $20 billion fund to finance development projects in Bahrain and Oman.
Qatar SE
Current year high: 9,242.63 Current year low: 6,647.18
> Review period: Closed March 24 at 8,307.85 points Period Change: 4.7%
Like other Gulf exchanges, the QSE regained its lost ground following positive news from Saudi Arabia, but Qatari firms had plenty to offer too. Several listed companies, including Mawashi, Zad and Qatar General Insurance reported strong 2010 results and estimates showed 34 of 43 listed companies collectively declared some $3.02 billion for the year. It was business as usual, with several acquisition announcements and virtually no impact from regional unrest. Heavyweights Industries Qatar and QNB were up 5.3% and 4.6% respectively during the review period.
Tunis SE
Current year high: 5,681.39 Current year low: 4,058.53
> Review period: Closed March 24 at 4,459.48 points Period Change: 9.9%
Stocks gained momentum on the Tunis stock exchange after trading resumed on March 7 following one week of suspension. Still, S&P downgraded the country’s sovereign credit rating, but affirmed the credit ratings of five Tunisian banks, restoring confidence in the sector despite a negative outlook. Tunisia continued to take solid steps toward establishing a democracy in the country with a first round of elections scheduled for July, but political and economic uncertainty remain. Some stocks advanced steadily, including Carthage Cement at 12.7% during the review period.
Casablanca SE
Current year high: 13,397.47 Current year low: 11,331.57
> Review period: Closed March 24 at 12,581.71 points Period Change: -1.7%
A surprising increase in February was followed by a minor decline in early March, then stocks drifted through the rest of the month without a clear direction, and without any noticeable impact from the NATO-led military campaign on Libya. Casablanca and other cities hosted large rallies calling for reform, with little impact on market performance thus far, as the US hailed Morocco’s king’s pledge for reforms. Banking stocks gave back 1.2% during the review period with Attijariwafa Bank retreating 2.4%.
Egypt SE
Current year high: 7,603.04 Current year low: 5,647.00
> Review period: Closed March 24 at 4,951 points Period Change: -12.3%
The EGX resumed trading on the exchange on March 23 two days ahead of a deadline that could have seen the market removed from MSCI’s Emerging Markets Index. The freedom to sell cost shareholders a 9% decline by the end of the first trading session with investors seeking to escape a steep plunge that reflected the sharp drops in Egyptian stock GDRs on the LSE seen since late Jan. But the second day brought some hope with 97 companies increasing in value compared to only 44 decliners.
