GCC stocks fall for first time in three months on global sell-off
Mirroring the worst monthly performance of global equity markets in 2023, the Bahrain Bourse All Share Index fell two per cent last month.
According to Kuwait-based Kamco Invest, the Bahrain Bourse’s biggest monthly decline in five months was broad-based, with four out of seven sector indices posting losses.
The consumer staples index was the worst performer, falling 6.7pc. The communications services index was next, down 5.5pc. The materials index was the only sector to post a gain, rising 1.4pc.
In terms of individual stocks, National Hotels was the top gainer, up 5.6pc. Arab Insurance Group and Bahrain National Holding were the next two biggest gainers, up 4.7pc and 4.2pc, respectively.
Bahrain Commercial Facilities was the biggest loser, down 22.5pc. Ithmaar Holding and Al Baraka Banking Group were the next two biggest losers, down 21.9pc and 10.4pc, respectively.
Trading activity on the exchange increased in August 2023, with total volume traded rising 36.2pc to 67.8 million shares as compared with 49.8m shares in July 2023.
Moreover, total value traded on BHB grew 57.5pc to BD18.5m last month as compared with BD11.8m during July 2023.
Al Salam Bank-Bahrain was the most traded stock in August 2023, with 21.5m shares traded.
Esterad Investment Company and Alba were the next two most traded stocks, with 16.6m and 4.7m shares changing hands, respectively.
The aluminium smelter was also the most valuable stock traded in August 2023, with BD5.2m worth of shares traded.
Al Salam Bank-Bahrain and Kuwait Finance House were the next two most valuable stocks traded, with BD4.1m and BD3m worth of swaps, respectively.
Zooming out, GCC equity markets saw their first decline in three months taking cues from global equity markets.
Despite a second half recovery, the MSCI World index was down 3.6pc during August 2023.
The MSCI GCC Index witnessed a slightly steeper decline of 3.8pc during the month led by fall in four out of seven exchanges, including in Saudi Arabia.
The decline came despite oil seeing gains for the third consecutive month on supply cuts and steady demand data.
Qatar was the worst performing market in the GCC during August 2023 with a slide of 7pc led by declines in almost all indices on the exchange.
The nosedive in Qatar wiped off all gains since the start of the year to record the biggest slump in the GCC at 4.6pc followed by Abu Dhabi and Kuwait both down 3.9pc.
On the other hand, Dubai was the best performing market with a YTD-2023 gain of 22.4pc followed by Saudi Arabia at 9.7pc.
The GCC sector chart showed declines in most sectors with healthcare being the biggest dragger at 11.6pc followed by F&B and telecom.
Banks and materials were down by 3.9pc and 2.9pc, respectively, while insurance and energy logged gains of 5.9pc and 4.4pc, respectively.
