A short trading week for most of the regional markets while investors’ absence because of holidays and the summer lull affected trading activities and volumes. On a weekly basis, regional indices had a mixed performance with Saudi Arabia being the best performer among its peers with a +1.4% gain followed by Bahrain +1.0%, Dubai +0.2%, and Kuwait and Egypt each up by +0.1%.
Qatar remained the worst performer on a weekly and year to date basis, as it lost -1.4% over the week and extended its YTD loses to -16.9%. Abu Dhabi and Oman also lost 0.3% and 0.1% respectively over the same period.
Commodities have been on the rise this week, with crude oil showing a very positive performance over the week reaching a high of USD 54.4 9 per barrel, on the back of hurricane damage in the US while gold reaching a new high of USD1,3499.22 per ounce as investors flocked to the safe haven.
As investors return from their vacations, trading activities and volumes should pick up. The probable inclusion of Saudi Arabia in FTSE, Egypt’s enhanced published macro figures and the awaited Emaar development arm IPO will be the positive triggers for market activity, while selling pressure will most probably stem from global developments.