GCC markets concluded with mixed but mostly positive results. Qatar (+4.9%) emerged as the top performer, buoyed by foreign institutional buying, according to a new analysis by investor relations consulting firm Iridium Advisors.
Dubai (+1.1%) advanced on the back of gains in Empower, Air Arabia, and Tecom Group, which reported a substantial increase in net profit for Q1 2023.
Bahrain (+0.6%) climbed for the third consecutive week.
Conversely, Oman (-0.2%) continued its downward trajectory for a third week.
Abu Dhabi (-0.9%) suffered partly due to FAB, while Saudi Arabia (-1.4%) weakened on account of banking, oil and petrochemical sector stocks.
Kuwait (-1.8%) posted losses after three weeks of gains. In the US, the S&P 500 (-0.8%) and Dow Jones (-1.2%) felt the impact of profit-taking, regional bank turmoil, and interest rate outlook. The Nasdaq Composite (+0.1%), however, edged up slightly, bolstered by Apple’s earnings report and bargain hunting.
In Europe, the DAX (+0.2%) kept rising, while the STOXX600 (-0.3%), CAC40 (-0.8%), and FTSE100 (-1.2%) declined further for a second week.
Following the US Fed monetary policy outcome, traders will likely focus on regional companies’ results releases and earnings calls. However, ongoing US banking industry troubles and the underperformance of the Chinese economy may dampen sentiment. This week, Air Arabia, Agthia, ADA, ADNOC Drilling, ADNOC Gas, AQARAT, ARKAN, Ascana, Baladna, BBK, BASREC, CBI, Cineco, Deyaar, DEWA, EIB, Emirates Insurance, Fertiglobe, GFH, Gulf Cement, Humansoft, IHC, IQCD, Julphar, Mabanee, National Cement, NBB, QAMCO, RAK Ceramics, Salik, Solidarity, UGIC, UGH, and several others are slated to announce their Q1 2023 results.
Fed meeting in focus
In the US, attention will be on the inflation report. April’s report is anticipated to reveal a decelerating decline in inflation, potentially delaying some Fed rate cuts. Headline inflation is expected at 5%, the slowest pace in almost two years. In the EU, a quiet week is predicted. In the UK, the BoE may anticipate a sharp drop in inflation, but it is unlikely to pause the tightening cycle, with inflation still above 10%. A 25 bps hike is already priced in. GDP data, which may indicate marginal economic growth, will also be released.
Read more: UAE, Qatar lead GCC market gains
GCC foreign net inflows of $507.9 mn
After two consecutive months of net foreign outflows, the GCC region registered net inflows of $507.9 million. Saudi Arabia noted an inflow of $961.8 million, marking seven straight months of net inflows and the region’s highest. Oman recorded $190.6 million in inflows, its sixth consecutive month, ranking second in the region, while Qatar placed third with $35.2 million in inflows, reversing an outflow of $12.5 million in March. Abu Dhabi experienced a net outflow of $750.2 million, continuing for the fourth month. However, Dubai registered net inflows of $107 million, marking nine consecutive months of net inflows. The cumulative outflows from the UAE for April amounted to $643.2 million. Additionally, Kuwait saw a net outflow of $36.3 million, its fifth consecutive month of outflows.
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