GCC Markets Performance in March 2013

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· All GCC markets, except the UAE, ended in the green

· Kuwait led the rally, with a 4.0%MoM gain, followed by Saudi Arabia

· Trading activity increased on MoM basis

· IPO activity remained subdued

GCC markets on a rise – UAE backtracks
GCC equity performance remained mixed in March. All bourses, except ADX and Dubai, gained during the month. The KSE index experienced the highest growth of 4.0%MoM amongst GCC markets. Saudi Arabia’s Tadawul index, the second best performer, rose 1.8%MoM. Dubai was the worst performer (down 5.1%MoM) amongst GCC markets, Oman and Bahrain experienced a marginal growth of 0.6%MoM, 0.2%MoM and 0.2%MoM, respectively, in March.

Combined market capitalization declined 0.2%MoM
Combined market capitalization of all GCC bourses declined 0.2%MoM to USD766.5bn in March 2013; the performance was mixed during the month, with just two market gaining and the remaining five declining. Saudi Arabia, the largest GCC market based on capitalization, gained USD5.7bn in capitalization to reach USD387.3bn. Qatar, the second largest GCC market based on capitalization, gained USD0.9bn from capitalization. Oman, the UAE (Abu Dhabi and Dubai), Kuwait and Bahrain together lost USD8.1bn from capitalization in March.

GCC trading activity increased in March
Overall trading activity in the GCC countries rose in March 2013, with value and volume growth of 3.8%MoM and 8.1%MoM, respectively. Except Saudi Arabia and Kuwait, all GCC markets recorded a fall in value traded. Value traded in Saudi Arabia and Kuwait surged 3.1%MoM to USD32.5bn and 68.2%MoM to USD4.0bn, respectively, during the month. The UAE experienced a 29.6%MoM fall in value traded to USD2.3bn.

IPO activity remained muted
Saudi Arabia continued to experience IPO activity in March. After Northern Region Cement Co.’s listing in February, National Medical Care was listed during March 2013. The company had announced its IPO on February 10, offering 13.5mn shares at a price of SAR27.0 per share.

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