Lack of catalysts coupled with the summer lull and the approaching Eid break dominated trading activities across the regional markets. Along with the end of earnings season, regional markets have been in a very thin range, trading volumes declining and no major macro or micro news affecting stocks’ prices.
Over the previous week, four out of the eight indices were modestly up with Oman coming out as the best performer with +1.4%, however this didn’t change the fact that it is still one of the worst performers among its peers on a year to date basis with a negative performance of -14.5%.
Saudi Arabia, Dubai and Bahrain joined the gainers over the week with each advancing by +0.9%, +0.6% and +0.2%, respectively. Qatar remains the worst performer among its peers, continuing its slide from the repercussions of the geopolitical situation, losing -1.7% on the week and extending its year to date losses to -14.2%.
Egypt lost -1.5% over the week which was expected given the recent euphoria that drove it close to the 14,000 level, the index all-time high, with the market retreating back to its support level at 13,000.
Abu Dhabi and Kuwait remained unchanged with Kuwait still maintaining its position as the best performer among its peers on a year to date basis, with upward performance of +19.8%.
Only one trading days left in August for some of the regional indices and with Eid looming towards the end of the week, subdued trading volumes and minimal market activity may well be on the cards.