Gulf equity markets begin recovery from week of losses
- GCC equity market show signs of recovery after major losses
- Saudi Arabias Tadawul rebounds by 7.4 per cent
- Chinese stocks continue to fall but stock markets stabilise globally
Stock markets across the GCC showed signs of recovery on 25 August from the significant losses caused by falling oil prices and recent turmoil on global stock markets.
On the Saudi Stock Exchange (Tadawul), the Tadawul All Shares Index (Tasi) surged 7.4 per cent on 25 August.
The recovery comes after falls of 6.9 and 5.9 per cent on 23 and 24 August respectively. The Tasi is still down 9.5 per cent on the beginning of the year.
The Dubai Financial Market (DFM) main index gained 4.61 per cent, as benchmark shares in local developer Emaar rebounded by 3.4 per cent.
The Qatar Exchange Index also rebounded by 3.2 per cent, after dropping 5.3 per cent on Sunday.
GCC equity falls in August 2015 | |||
---|---|---|---|
Market | Daily percentage changes to main index (23 August) | Daily percentage changes to main index (24 August) | Daily percentage changes to main index (25 August) |
Tadawul | -6.86 | -5.88 | 7.38 |
DFM | -6.96 | -1.44 | 4.61 |
ADX | -5.01 | -0.51 | 1.63 |
KSE | -2.36 | -1.59 | 0.33 |
QE | -5.25 | -1.65 | 3.15 |
MSM | -2.94 | -2.96 | 0.42 |
Bahrain Bourse | -0.37 | -0.80 | -0.04 |
Source: MEED |
After institutional emerging market funds and fearful investors sold off shares across the board early in the week, there were good opportunities to invest in well-managed companies below their usual price.
The losses were mainly due to falls in oil price. Brent crude dipped below $43 a barrel on 24 August, before stabilising. Commentators expect a slight rebound due to steady levels of demand.
Volatility across all commodity prices was based on fears that China, one of the biggest importers, would see demand slow. Bloombergs commodity index fell 8.1 per cent on Monday, although gold prices began to recover.
Negative economic data from China has caused turmoil on stock markets across the world this week. But while Chinese stocks continue their freefall, markets in the rest of Asia, Europe and North America also saw a rebound on Tuesday 25 August.
The Chinese government cut interest rates in response, while the US Federal Reserve is expected to delay interest rates rises previously expected in September.
You might also like...
Arada awards $167m Masaar construction contracts
16 April 2024
PIF and Acwa Power take next solar round
16 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.