Muscat: After registering the smallest monthly gain among GCC markets last month, Oman’s MSX index registered a decline of 1.0% in May 2022, according to a new report.
“The benchmark has seen consistent declines since the start of the month only to partially recover in recent trading sessions and close the month at 4,116.0 points,” the investment research and strategy-based firm said. in Kuwait in its latest GCC Monthly Markets Report.
In terms of sector performance, the financial and industrial indices registered declines during the month at 0.65% and 1.36% to reach 6,557.9 and 6,257.8 points, respectively. The services index posted the biggest drop of 3.4% to end the month at 1,581.9 points, according to the report.
Monthly trading activity on the exchange saw a significant drop from last month. The total volume of shares traded in May 2022 decreased by 51.6% to 252.5 million shares, compared to 522.1 million shares in April 2022.
Omanis accounted for over 94.3% of the total value of buy transactions during the month, up from 93.11% in April 2022. In terms of total value of sell transactions, Omanis accounted for 84.2% transactions in May 2022, compared to 92.1% the previous month.
In economic news, officials from Oman’s Ministry of Economy reported that the Sultanates’ financial indicators for the first quarter of 2022 were healthy and show that the country’s economy is firmly on the road to recovery.
Some of the major reasons attributed to the positive economic outlook were that the general state budget achieved a financial surplus of over OMR 300 million due to the rise in oil prices in the first quarter of the year. This better than expected financial performance for the first quarter of 2022 was also attributed to the measures taken by the Government of Oman to ensure the sustainability of financial and economic conditions.
GCC aggregate index
The GCC aggregate index fell for the first time in six months by 7.5%, led by fallout from global peers which saw declines for three of the first five months of this year, according to the Kamco report. Invest.
The decline in the Gulf Cooperation Council (GCC) also came as investors took profits on high valuations, with GCC markets among the best performers this year.
All GCC markets recorded declines in May 2022, with Dubai recording the largest drop of 10.0%, followed by Bahrain and Kuwait with declines of over 6.0%.
Markets fell almost 11.0% in the second and third weeks of the month, which was partially offset by gains in the last week.
The sector performance chart for the month showed that the declines during the month were led by the GCC heavy sectors. Only the GCC F&B index posted notable gains during the month at 2.7% and the energy index edged up 0.9%, while the rest of the sector indices posted declines.
The telecommunications index recorded the largest drop of 10.6%, followed by the materials and pharmaceuticals indices with declines of 8.6% and 8.3%, respectively.
Performance on the global front remained broadly subdued with a marginal decline of 0.2% for the MSCI World Index in May 2022, following a sharp decline of 8.4% in April 2022.
Most of the world’s major developed markets posted single-digit gains during the month, including Germany, the UK and Japan. On the other hand, the emerging market index stagnated as the decline in India was almost entirely offset by a relief rally in China.
Kuwait Stock Exchange
Kuwaiti benchmarks fell in May 2022 following a broad decline that affected most sectors of the stock market. The Premier Market Index saw the biggest monthly decline of 6.8% as the index’s constituent stocks posted mixed returns during the month. The Main Market Index saw a slightly smaller decline of 5.0%, followed by the Main 50 Index which fell 4.5%.
Saudi Arabia (Tadawul)
Saudi Exchange recorded its first decline in six months in May 2022 reeling from selling pressures in global stock markets. The benchmark TASI peaked at a closing high of 13,820.35 points at the end of the first week of the month, but saw steady declines thereafter, leading to an 11.5% drop that pushed it to a monthly closing low of 12,235.91 points.
However, the index showed a partial recovery in the last week of the month and ended the month at 12,921.7 points, registering a smaller decline of 5.9%.
Abu Dhabi Stock Exchange
The FTSE ADX index was the best performing GCC market in May 2022 despite falling 0.3% monthly to close at 10,054.9 points. In comparison, the market capitalization of the exchange increased by 0.7% during the month to reach AED 1.9 trillion. The benchmark also reclaimed the lead from the GCC in terms of 2022 year-to-date gains which reached 18.5% at the end of May 2022 after posting record growth in 2021.
Dubai Financial Market
The general DFM index signaled the largest drop in the GCC in May 2022, ending the positive trend seen in the previous seven consecutive months. The benchmark was down 10.0% during the month to close at 3,347.24 after gains over the past four trading sessions failed to fully offset declines since the start of the month.
Qatar Stock Exchange
The Qatar Stock Exchange fell for the first time in six months in May 2022, like most GCC countries. Steady declines since the beginning of the month caused the index to drop to 12,919.4 points at the end of the month, dragging down 4.9% month-on-month. The decline was generalized across all stocks, which was also reflected in the 4.8% drop in the Qatar All Share Index.
Bahrain Stock Exchange
The Bahrain Stock Exchange fell for the second consecutive month in May 2022, in line with the rest of the GCC markets. The benchmark index recorded the second-largest drop in the GCC during the month at 6.6%, mainly due to monthly declines in five of the seven sector indices. The May 2022 decline lowered 2022 year-to-date gains for the aggregate benchmark to single digits at 6.9%.