·GCC markets remained bullish in October
·Global markets extend its rally in October; QE program in focus
·Combined market capitalization increases 1.4%MoM in October
GCC markets extend rally in October
All GCC indices ended in the green in October after witnessing a recovery in September. However, the gains were restricted owing to the Eid holidays and profit taking toward the end of the month. DFM continued to outperform the other GCC markets, gaining 5.8%MoM, followed by QE (up 2.4%MoM) and KSE (2.3%MoM). Going forward, given the strong rally in GCC markets till date in 2013, particularly DFM and ADX, it is expected investors to adopt a cautious approach with their main focus on tapering of the US QE program.
Combined market capitalization rises 1.4%MoM in October
The combined market capitalization of all GCC bourses rose 1.4%MoM to USD886.4bn in October. All GCC markets, except for Kuwait, witnessed a gain in market capitalization during the month of October. TASI remained the highest contributor with its market capitalization standing at USD432.0bn. UAE markets (Abu Dhabi and Dubai) accounted for 17.9% of GCC market capitalization, standing at a combined total of USD158.5bn in October. Qatar contributed USD145.8bn (16.4%) to GCC market capitalization. Kuwait, Oman and Bahrain together amounted to USD150.2bn to market capitalization in September.
GCC trading declined in October
Overall trading activity in GCC countries declined during October, with a fall witnessed in both value and volume of shares traded. Volumes fell 40.3%MoM with all countries registering a decline. Similarly, value traded decreased 31.2%MoM with all countries recording a fall during October. Kuwait saw the biggest decline in value traded (-46.8%MoM), followed by Bahrain (-45.4%MoM). Saudi Arabia remained the highest contributor in absolute terms with a trading value of USD22.3bn. Bahrain witnessed the largest drop in volume traded (-53.3%MoM), followed by Qatar (-44.6%MoM).
