Even though volumes dropped and trade activity lessened as Ramadan kicked in, the sentiment itself did not take a nose dive. Given that the previous month had closed in the red, expectations that the downtrend would continue were surprisingly met with buyer resolve according to alternative asset management and advisory firm Al Masah Capital’s weekly investment report.
Dubai and Qatar led the way with 3.3% and 3.2% gains respectively, Abu Dhabi with a 3% up followed and Saudi and Egypt with 1.8% climbs brought up the rear. The positive start to the month of June coinciding with the start of Ramadan does provide some historical perspective as the Holy Month usually on average delivers positive returns for regional markets. If that will be the case again this year is what market participants may have been positioning for in the first week of the month.
The report stated, “However, there is a lot of trading remaining in the month and with significant global triggers in play (Brexit or not and the FED rate hike or not), regional investors will have to rely on stronger volumes and deep buyer conviction to maintain the uptrend. The coming week will provide a quick answer as to whether the first week gains have the momentum to keep going.”
| Indexes | Last | WTD (%) | MTD (%) | YTD (%) |
| Dubai (DFMGI) | 3,371.00 | 3.31% | 1.73% | 6.98% |
| Abu Dhabi (ADSMI) | 4,381.13 | 2.97% | 3.08% | 1.72% |
| Saudi (SASEIDX) | 6,606.92 | 1.82% | 2.46% | –4.41% |
| Kuwait (KWSE) | 5,410.60 | 0.62% | 0.19% | –3.64% |
| Egypt (EGX30) | 7,756.30 | 1.82% | 3.64% | 10.71% |
| Qatar (DSM) | 9,836.96 | 3.19% | 3.13% | –5.68% |
| Bahrain (BHSEIDX) | 1,119.64 | 0.30% | 0.73% | –7.92% |
| Oman (MSM30) | 5,886.06 | 1.14% | 1.29% | 8.88% |
| TR GCC (Reuters) | 189.90 | 2.42% | 2.20% | –2.33% |
| DJ MENA | 485.85 | 1.67% | 2.06% | –2.43% |
