Foreign investors were net buyers on GCC stock markets during the first quarter of 2024, with net buying at $1.5 billion compared to $1.3 billion in net selling during the previous quarter. The trend remained positive throughout the quarter, with the biggest buying seen in UAE listed stocks, followed by Boursa Kuwait. Saudi Arabia and Qatar witnessed net sell trades by foreign investors in January, but saw net buy trades in the following months. Oman and Bahrain were the only exchanges that witnessed net sale by foreign investors throughout the quarter.
Several key factors influenced the flow of foreign money in the region, including regional market trends, IPOs, geopolitical issues, economic health of individual countries, and crude oil prices. The quarter saw a mixed trend in the equity market, favoring gainers. The expectations related to global interest rate changes also impacted performance in the region, with seasonal selling pressure during Ramadan resulting in a decline in the market in March. Local investors were net sellers during the month, with shares being grabbed by foreign investors, leading to broad-based net buy trades by the latter.
Month-on-month performance showed a peak in net buying value by foreign investors in February, with a decline in March. Historical trends for trading by foreigners in GCC listed stocks revealed declines in only two quarters over the last five years. Foreigners bought the most stocks during Q1-2022, with net buy transactions of $11 billion, mainly in Saudi Arabia and Qatar.
Trading by GCC investors in GCC exchanges showed net sales during Q1-2024, with Oman witnessing the biggest net selling by GCC investors followed by Saudi Exchange and Dubai exchanges. On the other hand, Abu Dhabi exchange recorded the biggest net buying by GCC investors, partially offsetting the overall selling. Aggregate trading activity showed an increase in total GCC volume traded, with Saudi Arabia and Abu Dhabi topping the list in terms of gains. Qatar, however, saw a decline in volume traded.
The total value of shares traded during Q1-2024 also reported a gain, with Saudi Arabia reporting the biggest increase in trading activity. Aggregate value traded reached $202 billion, with most markets experiencing gains. Qatar, Bahrain, and Oman were the only markets that saw a decline in value traded during the quarter. Despite the fluctuations, the overall performance of GCC stock markets remained positive, with foreign investors playing a significant role in driving the buying trends across different exchanges.
