Beirut SE
Current year high: 1,100.84 Current year low: 912.12
> Review period: Closed May 24 at 912.47 points Period Change: -0.77%
Political developments in May took listed stocks on the BSE for a roller-coaster ride and left investors looking slightly down by the end of our review period. The ride was rough on Byblos Bank shares, which slid 7.2%, and less so on Solidere, which fell 1%, while Bank Audi shareholders booked a 2.9% gain. The emergence of a consensus candidate for the Ministry of Interior drove the MSCI Lebanon index up 2% before the government formation process hit new roadblocks, leaving stocks in the red for the fourth consecutive month.
Abu Dhabi Exchange
Current year high: 2,833.09 Current year low: 2,471.70
> Review period: Closed May 24 at 2,616.29 points Period Change: -2.94%
The global sell off in commodities, including oil and precious metals, hit the ADX like a lightning bolt and sent stocks bleeding. The decline only spared the industrial and insurance sectors, which trended up 1.3% and 1.5%, respectively, even as earnings reports showed that real estate and banking were the only two sectors with increased profits in the first quarter of 2011. Shares of Aldar, the emirate’s largest real estate developer, dropped 14% despite a return to profitability in the first quarter, while Abu Dhabi National Takaful shares pulled away with a spectacular 111% return.
Kuwait SE
Current year high: 7,129.30 Current year low: 6,134.60
> Review period: Closed May 24 at 6,410.6 points Period Change: -1.7%
The mood was mostly grim on the Kuwait Stock Exchange in May, and much of the attention centered on fist-fighting in parliament. The banking sector is still vulnerable to real estate declines, a report warned glumly. Among companies, Wataniya Airways wound down its operations and laid off most of its staff of 600 pending a capital increase decision by shareholders. Traders even punished Zain Group with a 13.3% decline in shares despite its 40% leap in first quarter profits.
Amman SE
Current year high: 2,477.99 Current year low: 2,149.11
> Review period: Closed May 24 at 2,187.6 points Period Change: -0.47%
Despite recent credit downgrades and the assignment of a negative outlook to some banks by Moody’s, the banking sector was the face saver for the Amman Stock Exchange index in May. The banking index gained 1.2% during the review period as first-quarter results showed profits at banks rose 3.3% YoY. Shares of Arab Bank, the market’s biggest constituent, inched up 0.8%. Countering the positive banking vibes were mining and extraction stocks, which fell 3.3%, reflecting the global sell-off in commodities.
Dubai FM
Current year high: 1,781.92 Current year low: 1,352.24
> Review period: Closed May 24 at 1544.28 points Period Change: -5.5%
The fall in commodity prices and speculation about a weaker global economy following credit concerns in Europe weighed on DFM stocks, making the DFM index the worst performer among MENA exchanges in May. Despite having shown early signs of a recovery, the real estate sector still fell behind, with Emaar Properties, the region’s largest real estate developer, reporting a 45% YoY drop in first quarter net profits on the back of an 80% fall in property sales. On the bright side, investors viewed positively the government’s takeover of Dubai Bank to avoid a bank failure.
Saudi Arabia SE
Current year high: 6,788.42 Current year low: 5,323.27
> Review period: Closed May 24 at 6,710.71 points Period Change: 0%
Despite the drop in oil prices, equity prices trends in Saudi Arabia, the world’s largest oil exporter, were unfazed. The TASI finished the review period flat and the SSE is the only MENA exchange in the pink year-to-date. However, the petrochemicals sector, which was a key driver behind recent strong market performance, shed 2.5%, along with a 1.3% decline in the banking sector. Rescuing TASI performance were the construction and real estate sectors, up 5.9% and 2.1% respectively.
Muscat SM
Current year high: 7,027.32 Current year low: 6,029.02
> Review period: Closed May 24 at 6,039.79 points Period Change: -4.67%
The overall performance of stocks on the Muscat Securities Market did not reflect the strong first quarter results at Bank Sohar, where net profit was up 8% YoY, or at Ahli Bank, where profits leapt 28%. Instead, investors on the Omani bourse sent banking stocks down 8.6%, while Omantel, which reported a 19% decline in profits on higher infrastructure spending, beat the market with a slight 2.4% decline. Shares in banking heavyweight BankMuscat plummeted 8.8% on unusually low volumes and Omanoil shares rose 5.3% after announcing an 18% rise in first quarter profits.
Qatar SE
Current year high: 9,242.63 Current year low: 6,683.02
> Review period: Closed May 24 at 8,381.39 points Period Change: -1.95%
A global backlash against Qatar overshadowed positive domestic earnings news. FIFA said it will investigate claims that Qatar used bribes to swing the World Cup 2022 vote and didn’t rule out a new vote if allegations were confirmed. At the same time, nearly $6 billion in Qatari projects are estimated to be at risk in Syria following upheaval over Al Jazeera’s coverage of the country’s recent unrest. Positively, net profits at 37 of the 42 listed companies rose 17.4% YoY in the first quarter, and Qatar Exchange said it will list Sukuk as part of its plans to introduce bond trading.
Casablanca SE
Current year high: 13,397.47 Current year low: 11,499.64
> Review period: Closed May 24 at 11,945.15 points Period Change: +3.4%
Moroccan stocks enjoyed a month filled with positive announcements for the North African kingdom, the highlight being an invitation to join the hydrocarbon-rich GCC block in a few years, driving the two oil and gas stocks up 10% during our review period. Domestically, listed stocks benefited from more reform announcements, including an expansion in the powers of the prime minster, and from plans to launch a multibillion dollar tourism development fund. Attijariwafa Bank shares rose 5.7%.
Bahrain Bourse
Current year high: 1,475.10 Current year low: 1,361.19
> Review period: Closed May 24 at 1,365.59 points Period Change: -2.8%
The downward trend in stocks on the Bahrain Stock Exchange showed no signs of abating. Domestically, harsh sentences, ranging from 20 years in prison to execution, were handed out to protestors, drawing sharp international criticism. Regionally, the country froze a gas import deal with Iran but stopped short of canceling the agreement. With Al Baraka Banking Group reporting a net income increase of 11% in the first quarter, banking sector numbers showed some strength but that couldn’t stop market cap leader Ahli United Bank shares falling 2% during our review period.
Tunis SE
Current year high: 5,681.39 Current year low: 4,058.53
> Review period: Closed May 24 at 5,290 points Period Change: +5.7%
The EGX30 index handed investors the highest return in the MENA region in May as confidence and liquidity began to return to the battered economy with pledges of international aid promised to prop up the Egyptian government’s finances. Since trading on the EGX resumed on March 23, construction stocks have been strong compared to the banking sector, but the latter gained momentum in May and buoyed the exchange. Market cap leader Orascom Construction Industries shares rose 5.5%.
