GCC markets: Riding the global recovery wave as investors await earnings

Firm closing in global equities expected to buoy
GCC markets: Riding the global recovery wave as investors await earnings
GCC markets

Almost all GCC equity markets found upward momentum last week, according to investor relations consulting firm Iridium Advisors.

Kuwait recorded (+1.8 percent). Dubai (+1.2 percent), thanks to robust property price growth as per Coldwell Banker Richard Ellis (CBRE) data. Other gains included Saudi Arabia (+0.9 percent), Bahrain (+0.8 percent), and Abu Dhabi (+0.7 percent), driven in part by First Abu Dhabi Bank (FAB) and Etisalat. Oman (+0.1 percent ) eked out its 6th week of continuous growth. Qatar experienced a minor retreat (-0.3 percent) following Qatar National Bank’s (QNB)’s 4 percent year-on-year (YoY) decrease in Q2 2023 net profit.

Internationally, U.S. markets rebounded on the heels of favorable inflation data and a spate of positive earnings reports, with the Nasdaq Composite (+3.3 percent) taking the lead, trailed by Standard & Poor’s (S&P) 500 (+2.4 percent) and Dow Jones (+2.3 percent).

Similar recovery sentiments were seen across Europe, with Continuous Assisted Quotation CAC40 (+3.7 percent) outperforming its peers, followed by Deutscher Aktienindex (DAX) (+3.2 percent), STOXX600 (stock index of European stocks) (+2.9 percent), and Financial Times Stock Exchange (FTSE100) (+2.4 percent).

Read more: GCC equity markets defy global sell-off, closing on a high note

Regional markets – Firm closing in global equities expected to buoy

Initial positivity in regional markets is anticipated due to last week’s global market recovery and gains in crude oil prices. As the week unfolds, the focus will likely shift to earnings announcements. Companies including BHM Capital, BBK, CBQK, FAB, MARK, Palms Sports, QIB, and Woqod are slated to report 2Q 2023 results, while Ahli Bank and Retal Urban seek shareholder approval to raise share capital. Omani equities might experience increased activity following weekend earnings releases.

Global markets

A flurry of earnings releases and key US economic indicators will be under the spotlight, particularly ISM manufacturing data and retail sales, the latter expected to impress due to customer discounts. European investors will keep tabs on CPI data and remarks by Christine Lagarde at the 9th ECB conference in Frankfurt. UK industry predicts the core CPI to remain at 7.1%.

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