By Mahmoud Gamal
Mubasher: GCC stock markets incurred tremendous losses during 26-30 June following Britain's shocking decision to leave the European Union (Brexit).
Based on Mubasher database, five GCC equity markets logged more than $7.7 billion losses due to a seismic wave of sell-offs after Brexit.
The retreating equity values were headed by Saudi Arabia's Tadawul after losing $2.84 billion, and then came UAE bourses, the Kuwaiti stocks, and the Qatari ones with damages amounting to $2.55 billion, $1.73 billion, $1.06 billion respectively.
"Investors had shared worrying sentiments after Britons voted for Brexit", said Manaf Al-Muluhi, head of research department at Al Safwa Islamic Financial Services. As global and oil markets had crashed, they managed random sell-offs.
However, Brexit shock was limitedly absorbed, market analyst Mohamed Sonbol noticed, highlighting that each market is now controlled by its ordinary ups and downs that determine the market's trend.
GCC stocks are likely to be put under greater pressure following Eid al-Fitr as US dollar is seen surging against key global currencies, UK pound in particular, which will, in effect, put more pressure on Brent prices, Sonbol added.
Tracking main indices' movement, Dubai benchmark index led the losers by 1.68%, followed by Qatar’s QE Index (-0.81%), Kuwait’s SE Price Index (-0.80%), Tadawul All Share Index (-0.78%), and Bahrain’s BB All Share Index (-0.05%).
It is logical to see Dubai main index heading the losers due to the repercussion of Brexit on the real estate and tourism sectors, Al-Muluhi commented.
In spite of recovery, GCC stock markets still adopt mid-to-short term downward movements; moreover, a recoil is to occur anew, even after a correction coupled with some gains, Sonbol concluded.
Translated by Ahmed Elsayed Ali
