GCC bourses to extend positive performance in February – Analysis

GCC bourses to extend positive performance in February – Analysis
The GCC stock markets’ performance during January was extraordinary

By: Mahmoud Gamal

Dubai – Mubasher: After a green month full of gains in January, GCC bourses are expected to maintain the positive performance in February, especially if the efforts aimed at ending the so-called trade war between the US and China yield success.

Since the beginning of the year, the best market in the GCC was the Saudi Stock Exchange (Tadawul), which went up around 10%, followed by both the Kuwaiti and Bahrain markets.

The GCC stock markets’ performance during January was extraordinary, resulted by investors’ optimism regarding the annual disclosures and their appetite for building new positions, analysts told Mubasher.

One of the main reasons behind the increase in foreign investments in the regional equity markets was the merger wave announced in the first month of 2019, they added.

However, the GCC markets, especially the UAE’s, are in need of more market-boosting incentives that could attract fresh foreign investments, technical analyst Ibrahim Al Felkawy said, adding that markets would see some fluctuation until the emergence of positive signs.

Furthermore, economist Mohammed Al-Maymony noted that the growth seen in the GCC bourses in January stemmed – in part – from the selective purchases of a group of stocks.

Markets will level up by mid-February in tandem with the end of annual disclosures, the analyst remarked.

The inclusion of the Saudi market in the MSCI Emerging Markets Index will boost foreign investments in the kingdom, Al-Maymony concluded.

 

Translated by: Muhammad Khalid