Investors Regain Confidence in Regional Markets

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October is looking to close out with a wave of optimism. Global markets ended the week on a positive note led by US equity markets, which all cheered last Friday, reaching their all-time highs on the back of blockbuster earnings from Amazon, Google and Microsoft defying street expectations. Crude oil joined the parade reaching USD 60.44 per barrel which is the highest level for the black gold since November 2015.

Regional markets matched the optimistic moves as well, led by Dubai which has advanced +2.4% MtD, followed by Abu Dhabi and Egypt gaining +1.6% and +0.5%, respectively, for the same period. On the macro picture, regional markets are eagerly anticipating catalysts that will back their positive performance going forward: UAE markets are waiting for the Emaar Development IPO to inject liquidity and optimism; Saudi Arabia’s grand announcements that include NEOM (USD500 billion city -project by the Red Sea), ARAMCO IPO staying on track, and the expansionary budget announcement for 2018; and in Egypt the stock market is trading near its all times highs proving investors’ confidence in the economy remains strong.

Positive global outlook coupled with higher oil prices and investors’ regaining their confidence in regional markets should maintain a positive outlook on trading activities for the coming period.

Indexes Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 3,651.10 -0.59% 2.44% 3.40%
Abu Dhabi (ADSMI) 4,467.72 -0.83% 1.60% -1.73%
Saudi (SASEIDX) 6,910.65 -1.43% -5.11% -4.16%
Kuwait (KWSE) 6,623.49 -0.14% -0.84% 15.23%
Egypt (EGX30) 13,955.47 1.76% 0.48% 13.05%
Qatar (DSM) 8,128.25 -0.54% -2.22% -22.12%
Bahrain (BHSEIDX) 1,277.38 -0.12% -0.47% 4.66%
Oman (MSM30) 4,958.57 -2.14% -3.48% -14.25%
TR GCC (Reuters) 194.51 -0.70% -0.08% -3.99%
DJ MENA 526.67 0.00% 0.26% 5.77%

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