In the GCC region, Saudi’s market saw the highest growth (+3.0%), bolstered by a surge in crude oil prices following OPEC+’s unexpected production cut announcement, according to a new analysis by investor relations consulting firm Iridium Advisors.
Qatar (+1.3%) maintained its upward trajectory for the third consecutive week. Abu Dhabi (+0.3%) and Dubai (+0.1%) experienced modest gains, likely fueled by recovering oil prices. Bahrain remained flat, while Kuwait (-1.2%) and Oman (-2.2%) suffered losses. In the US, the Dow Jones Industrial Average (+0.6%) closed in positive territory, supported by a rally in energy stocks and Johnson & Johnson’s agreement to pay $8.9 billion over 25 years to settle claims related to its baby powder products. The S&P 500 (-0.1%) and the Nasdaq Composite (-1.1%) declined, hampered by profit-taking and disappointing economic data. European markets displayed mixed results, with the DAX (-0.2%) closing lower, the CAC40 remaining flat, and the STOXX600 (+0.2%) and FTSE100 (+1.4%) exhibiting an upward trend.
The week ahead
The World Bank’s forecast of slowed global and GCC economic growth in 2023 may dampen investor sentiment, although strengthening crude oil prices could provide support. Market participants will likely concentrate on the upcoming 1Q 2023 earnings season, with QNB, QIB, Woqod, and several Omani-listed companies slated to release their financial results. Additionally, Arzan and A’Saffa Foods will hold shareholder meetings to discuss dividend distribution, bonus shares issuance, and a potential merger with A’Saffa Logistics.
Read more: GCC markets closed mixed
Globally
Investors will closely monitor the March US inflation report, with headline inflation expected to drop to 5.2% year-on-year from 6% in February. Retail sales data for March is also anticipated to show a soft month of spending. In the EU, the European Central Bank’s accounts will draw interest due to recent banking turmoil and a 50 bps interest rate hike. In the UK, the Bank of England Governor’s speech in Washington will be closely followed, along with GDP data later in the week.
GCC net foreign flows in March 2023
March marked the second consecutive month of net foreign investor outflows for GCC equity markets, totaling $354.1 million. Despite continued net selling in Abu Dhabi’s market (-$418.6 million) for the third month in a row, Dubai recorded a net foreign inflow of $84.5 million. The cumulative net outflows from the UAE amounted to $334.1 million. Additionally, Kuwait experienced its highest net outflow in the past four months, reaching $100.7 million. Qatar was the third GCC market to register net foreign outflows during the month. In contrast, Saudi Arabia logged the second-highest net foreign inflow in the GCC (+$65.4 million), following Dubai. Oman continued its streak of net foreign inflows for the fifth consecutive month. While data for Bahrain was not readily accessible, our calculations indicate net foreign inflows of around $10 million in March.
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