By Mahmoud Gamal
Mubasher: Stock markets in the GCC region and Egypt were battered during 2015, amid political and economic crises.
The global economy was overshadowed this year by signs of a new financial crisis led by China, then the slump in oil prices, in addition to the military strikes led by Saudi Arabia against Houthi rebels in Yemen.
The Saudi Stock Exchange (Tadawul), the region’s biggest market in terms of capitalisation, lost around 18% of its value in 2015.
Dubai Financial Market also lost 16.5% or 623 points during the year to reach 3,151 points. Similarly, Abu Dhabi Securities Exchange sagged 4.9% or 623 points to 4,307.26 points.
The Gulf markets were negatively impacted by several political and economic crises like Russia and Ukraine tensions, as well as the Greek financial turmoil, said Ibrahim Al Failakawi, capital market analyst.
Muscat Securities Market (MSM) fell by 14.7% or 937 points to close at 5,406.22 points. Bahrain Bourse pulled back by 14.7% or 210.68 points to 1,215.89 points and Kuwait Stock Exchange lost 14.13% or 923.60 points to 5,612.12 points.
Faisal Boushehri, technical analyst, said the steep declines in GCC markets this year show an exit of cash as well as investors and speculators’ shying away from the trading floor.
Qatar Stock Exchange (QSE) fell by 14.7% or 1,809.33 points to 1,0476.45 points. The Egyptian Exchange also dropped by 21%.
Among the factors that will define the flow of capital to the regional markets in 2016 are crude prices that continue their fall, in addition to the spending plans of GCC states, said Badr Albalwai, member of Saudi Economic Association.
For his part, Ziad Dabbas, financial analyst, pointed out that the severe declines in GCC equities provide attractive investment opportunities for long-term investors. He expected investment portfolios to actively buy stocks of leading companies that distribute high dividends and post strong profits.
Translated by Sayed Abdel Rahman
