Regional markets positive in July; Trading to remain subdued

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Global equity recorded one of the worst weekly performances of the year on the back of worries that escalating trade tensions and the rising possibility of a hard Brexit could potentially worsen the global economic outlook. The US Fed tried to reassure the markets by reducing the rates by 25 bps during the week but the Chairman’s accompanying comments failed to revive equity markets as investors were hoping for a clear direction of further rate cuts in the months ahead. Brent crude oil prices were down 2.47% during the week, weighed by the escalating trade tensions and slowing demand.

For the regional markets, the performance was slightly positive during the week as 5 out of the 8 indexes closed in green while the remaining 3 closed in red. Bahrain and Dubai were the best performing indexes regionally with gains of 1.76% and 1.74%, respectively while Abu Dhabi was the worst performing index regionally with losses of 2.92%. The regional markets performed positively in the month of July. Dubai was the best performing index with gains of 9.77%, followed by 6.79% in Abu Dhabi, while Egypt was the worst performer with losses of 5.02%, followed by 3.20% in Oman.

Since the Fed rate cut and most of the earnings announcements are over, the markets will be dominated by any news regarding the US and China trade development. For the regional markets, trading activity is likely to remain subdued as the steam from earnings announcements fades out.

Indexes   Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 2,900.39 1.74% -0.62% 14.65%
Abu Dhabi (ADSMI) 5,230.22 -2.92% -1.65% 6.41%
Saudi (SASEIDX) 8,666.39 -1.73% -0.76% 10.73%
Kuwait (KWSE) 4,892.23 0.94% 0.22% 3.24%
Egypt (EGX30) 13,525.93 0.12% 1.00% 3.76%
Bahrain (BHSEIDX) 1,549.58 1.76% 0.12% 15.88%
Oman (MSM30) 3,776.83 0.59% 0.43% -12.65%

 

Commodities    Value WTD (%) MTD (%) YTD (%)
Gold (s/OZ) 1440.46 1.56% 1.90% 12.30%
Silver ($/Oz) 16.21 -1.08% -0.28% 4.72%
WTI ($/bbl) 55.66 -0.96% -4.98% 22.57%
Natural Gas 2.12 -2.21% -5.02% -27.86%
OPEC Oil ($/bl) 61.89 -2.47% -5.03% 15.04%
Copper ($/MT) 5841.64 -2.50% -1.62% -3.18%
Aluminium ($/MT) 1781 -2.05% -1.36% -3.36%

 

FX Rates   Value WTD (%) MTD (%) YTD (%)
USD/AED 3.6725 -0.01% -0.01% -0.01%
USD/SAR 3.751 0.03% 0.01% 0.00%
USD/EGP 16.53 -0.06% 0.18% -7.45%
USD/EUR 0.9 0.16% -0.30% 3.25%
USD/JPY 106.58 -1.91% -1.99% -2.72%

 

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