Regional Trading to Follow Trends in Global Markets

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CORONAVIRUS IMPACT

Global equity markets continued the positive trajectory as investors got more clarity on three events that have mostly dominated the trading activity for majority of 2019. Firstly, the US and China reached a phase one trade deal, easing fears of further escalation in tariffs in 2020. Secondly, the US Fed left interest rates unchanged, indicating that they might continue with the wait and watch strategy in 2020. Lastly, Prime Minister Boris Johnson received an overwhelming majority in general elections, reducing part of the uncertainty in Brexit negotiations with the EU.

Moreover, the economic activity is also showing continued signs of improvement, which is driving the markets, especially the US indexes to new highs. Brent crude oil prices closed higher by 1.29% during the week, supported by positive developments witnessed in global markets, which is likely to improve demand going forward.

For the regional markets, 5 out of the 8 regional indexes closed in red while 3 closed in green. Egypt was the worst performing index regionally with losses of 1.94% while Bahrain was the best performing index with gains of 1.30%, followed by 1.27% in Saudi Arabia, and 1.03% in Dubai. The listing of Saudi Aramco during the week hogged the limelight as it has become the largest public company in the world.

Going forward, investors are expected to reassess their portfolios on the back of positive developments in the three key events to accordingly position themselves for 2020. The trading activity might be subdued in the next two weeks due to the upcoming holiday season. For the regional markets, trading activity will be supported by trends in global markets coupled with continued interest from international investors in Saudi Aramco.

Indexes   Last WTD (%) MTD (%) YTD (%)
Dubai (DFMGI) 2,722.43 1.03% 1.63% 7.62%
Abu Dhabi (ADSMI) 5,036.46 -0.20% 0.11% 2.47%
Saudi (SASEIDX) 8,005.77 1.27% 1.87% 2.29%
Kuwait (KWSE) 4,821.28 -0.04% 1.14% 1.75%
Egypt (EGX30) 13,358.47 -1.94% -3.55% 2.48%
Bahrain (BHSEIDX) 1,567.41 1.30% 2.65% 17.21%
Oman (MSM30) 4,019.67 -0.23% -1.09% -7.03%

 

Commodities    Value WTD (%) MTD (%) YTD (%)
Gold (s/OZ) 1,475.56 1.10% 0.80% 15.03%
Silver ($/Oz) 16.93 2.24% -0.52% 9.38%
WTI ($/bbl) 60.07 1.47% 8.88% 32.28%
Natural Gas 2.3 -1.63% 0.66% -21.90%
OPEC Oil ($/bl) 65.22 1.29% 4.47% 21.23%
Copper ($/MT) 6180 6.06% 4.82% 2.43%
Aluminium ($/MT) 1780 0.76% 1.15% -3.42%

 

FX Rates   Value WTD (%) MTD (%) YTD (%)
USD/AED 3.6728 0.00% 0.00% 0.00%
USD/SAR 3.75 0.01% 0.01% -0.02%
USD/EGP 16.07 -0.19% 0.00% -10.02%
USD/KWD 0.303 -0.10% -0.26% -0.04%
USD/EUR 0.899 -0.56% -0.94% 3.13%
USD/JPY 109.36 0.71% -0.14% -0.18%

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