GCC bourse upbeat as Global concerns ease

KUWAIT: Improved global financial market conditions, intensified central bank intervention through large-scale asset-purchase programs, prolonged global liquidity injection and renewed pursuit of high-yielding assets helped ease concerns of another global economic slowdown.

Increasing stabilization of financial market conditions in Europe together with less fiscal-related tension in US markets and on-going signs of economic recovery in China have contributed to a moderation in risk aversion globally. As a result, investors’ risk appetite in the GCC replenished on hopes that a recovery in economies that have been experiencing a slowdown after the global financial crisis may show signs of improvement in the near future. All combined, this pushed GCC equity markets to record highs in what seems to be a strong and positive beginning for 2013.

GCC Bourses began 2013 on the upside with all markets recording healthy gains during January 2013. Dubai Financial Market was the best performer for the month adding 16.34% following a solid year 2012 which witnessed the DFM General Index leading the GCC Bourses benchmarks with an annual return of 20%. Recovery in the property market, acceleration in business activities driven by tourism and increasing trade volume, along with the benefits of the Arab spring that triggered a flow of capital to Dubai are the major catalyst that are driving DFM. Abu Dhabi Securities Exchange is benefiting from the government’s massive capital spending plan to develop the emirate by investing in infrastructure and real estate projects along with robust oil prices and healthy corporate profits; ADX General Index followed with a monthly gain of 9.54% compared to 9.52% gain in full year 2012. Qatar Exchange, TADAWUL and Kuwait Stock Exchange also recorded corresponding healthy gains of 4.38%, 3.56% and 3.48%, respectively during January-13 driven by the positive market sentiment, improvement in business environment, healthy corporate earnings and governments’ backup of key economic sectors and capital spending.

Read more: http://news.kuwaittimes.net/2013/02/10/gcc-bourse-upbeat-as-global-concerns-ease/