Gulf equities saw a positive shift in June, ending the month in the green after months of decline. According to Kamco Invest’s GCC Markets Monthly Report, the GCC index witnessed its first monthly gain in June 2024, driven by strong performances in Qatar and Abu Dhabi. The FTSE ADX index also saw a monthly gain, reducing its year-to-date decline from -7.5% in May to -5.4% in June.
The strong performance of the Gulf equities was reflected in the sector indices on the exchange, with eight out of ten sectors recording gains in June. The utilities index saw the largest gain, up 21.2%, driven by Abu Dhabi National Energy Company (Taqa). The real estate index also performed well, up 11.1% due to Al Dar Properties’ share price jump. However, the Basic Materials and Telecoms indices reported declines of 1.3% and 0.4% respectively.
In terms of individual stock performance, Abu Dhabi National Company for Building Materials saw the highest monthly gain, with its share price increasing by 88.2%. On the decliner’s side, Al Khaleej Investment experienced a 26.4% fall in its share price. Trading activity on the exchange decreased in June, with total volume and value of shares traded declining by 36.2% and 30.5% respectively.
In Dubai, the DFM General Index rose 1.3% in June after experiencing three consecutive monthly declines. The financial sector index, the largest weighted sector in the exchange, was among the gainers, with significant share price gains in banks like Commercial Bank of Dubai and Dubai Islamic Bank contributing to the overall index growth. The consumer staples index saw the biggest monthly increase at 11.6%, followed by the real estate index at 5.3%.
Drake & Scull International Company topped the monthly gainers table in Dubai with a 25.3% jump in share price. On the decliner’s side, International Financial Advisors experienced a decline of 9.9%. Trading activity in Dubai was mixed, with total volume traded increasing by 2.5% while the total value of shares traded decreased by 24.4%.
Overall, Gulf equities showed signs of recovery in June, with both Qatar and Abu Dhabi leading the way. The positive performance of various sector indices and individual stocks indicate a potential turnaround in the region’s equity markets. Investors will be closely watching for further developments and trends in the coming months to assess the sustainability of this positive momentum.
