MENA outperforms 
global stocks in Aug

DUBAI — Middle East and North Africa (MENA) markets outperformed international markets throughout August, according to the latest MENA markets report from Rasmala 
Investment Bank.

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Published: Wed 8 Sep 2010, 10:55 PM

Last updated: Mon 6 Apr 2015, 5:14 PM

There were renewed concerns for investors throughout August as there was a slowdown in the global economic recovery. Most Middle East benchmarks traded sideways as uncertainty and global volatility is keeping investors on the sidelines, accordingto Rasmala.

Global news supporting this viewpoint included reports of a deceleration of China’s economic activity, the Bank of England’s downgrade of the UK’s growth outlook and weak US housing data. On a regional level, the overlap of Ramadan and summer combined with a lack of catalysts lead to the lowest volumes in several years for some of the local markets.

MENA markets outperformed international equity markets despite both indices ending lower on the month. The MSCI Arabian Markets Index lost 0.5 per cent compared to a drop of 3.9 per cent for international markets as measured by the MSCI World Index. On a YTD (year-to-date) basis, the region continued to fare better than international markets up 1.5 per cent compared to a YTD decline of 7.5 per cent forinternational markets.

United Arab Emirates

Indices reversed last month’s positive trends as both the DFM (Dubai Financial Market) and Abu Dhabi Securities Market, known as ADX, lost 1.9 per cent on the month, on a YTD basis, the DFM and ADX are still 17.7 per cent and 8.9 per cent in the red, respectively.

In the real estate sector Emaar, sold a commercial property for Dh331.7 million and incurred a loss of Dh38.5 million from the sale of Hamptons Group’s operations in Europe, UK and Asia to countrywide. The stock ended flat during August end. The issuer rating for Aldar Properties was downgraded by Moody’s to Ba3 from Ba1 and the stock dropped 8.9 per cent. In the financial sector, Emirates NBD raised $221 million from the Middle East’s first issue of securities backed by auto loans. The stock lost 2.8 per cent in August. Dubai Islamic Bank led the losses, dropping 5.1 per cent and its second quarter net profit dropped 33.1 per cent from a year earlier to Dh301 million. In telecoms, Du posted a net profit of Dh137.4 million in the second quarter compared with Dh57.6 million in the year-earlier period. The stock gained 2.5 per cent on the month.

Meanwhile, ADX heavyweight, Etisalat, lost 1 per cent in August. Among other Gulf markets the Tadawul Index lost 2.8 per cent in August after gaining 3.1 per cent in July. On a YTD basis, the index is now down 0.3 per cent. In Kuwi , the KSE Index finished the month up 0.5 per cent. The index is still 4.5 per cent in the red since the beginning of the year. Qatar’s DSM 20 Index continued to be the top performer among the GCC indices, rising another 2.8 per cent to reach a three-month high and bringing the year-to-date gain to3.8 per cent.

Oman’s MSM Index reversed last month’s upward trend losing 0.6 per cent in August and is 1.8 per cent in the red on a YTD basis. In North Africa, Egypt’s EGX gained for a second consecutive month, up 1.5 per cent in August. On a YTD basis, the index is 3.2 per cent in the green.


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