Publications
Partners
Kuwait City - Stock markets in the energy-rich Gulf end 2010 mixed, with strong oil prices and the decision to award Qatar the right to host the 2022 World Cup offset by financial shockwaves in Dubai and Europe.
Qatar, Saudi Arabia and Oman ended the year in positive territory but Kuwait, the United Arab Emirates' Dubai and Abu Dhabi and Bahrain finished in the red, with Dubai topping the list.
All seven markets fluctuated in 2010, particularly in the second quarter, impacted by major economic developments as they tried to recover from the global economic crisis.
All made gains in the second half, tracking oil price movements which breached $90 a barrel.
The Arab states in the Gulf sit on about 45% of global oil reserves and around a fifth of natural gas deposits, and they pump around 15 million barrels a day, or 18% of world oil supplies.
The seven bourses added around $90bn to their capitalisation which ended the year at $770bn, according to the Abu Dhabi-based Arab Monetary Fund.
That is still far below their end-2007 value of $1.116 trillion, however.
Higher oil prices have boosted revenues and subsequently increased the Gulf nations' domestic spending and savings in their sovereign wealth funds.
Qatar Exchange, formerly Doha Securities Market, led Gulf gainers to end the year up by an impressive 24.8% at 8,681.65 points, with more than half of that in the fourth quarter.
At half year, Qatar had dropped slightly below 2009's close, but it made a remarkable recovery in the second half on the back of a booming economy and winning the right to host the 2022 World Cup.
Qatar Exchange capitalisation rose by around $40bn to end the year at $123bn. Last year, Qatar Exchange index rose by just 1.06%.
The Saudi Tadawul All-Shares Index (TASI), the most capitalised Arab bourse, ended 8.15% higher at 6 620.75 points for the second year in a row, after slumping 56.5% in 2008 because of the economic downturn.
In the red
TASI was carried on the back of market-leading petrochemicals sector, which includes giant SABIC, that gained 20.8% and banks which added 6.7%. SABIC alone was 27% higher.
TASI hit a year high of 6 929.40 points in late April before plunging to its lowest of 5 760.33 points in late May.
Kuwait Stock Exchange, the second largest Arab bourse, finished in the red for the second year running, shedding just 0.7% to close 2010 at 6 955.5 points. In 2009, it dipped 10%.
The Kuwaiti bourse has been severely impacted by political instability and debt among many of its investment firms.
KIPCO Asset Management (KAMCO) said in a report that KSE was still reeling from the global economic downturn, a severe credit crunch and a plunge in real estate values.
The main problem remains small struggling companies which have impacted the price-weighted index, while the value-weighted index, representing major listed firms, rose by 26% in 2010, KAMCO said.
The two UAE bourses ended the year in the red because of Dubai's debt problem. Most losses came in the first half, before a settlement was reached for part of Dubai debt.
The Dubai Financial Market closed the year down 9.6% at 1 630.5 points. In the first half, the DFM index shed 19% to around 1 455 points. Market leader Emaar properties lost around 11% in the year.
In 2008, DFM shed around 73% before recovering 10.3% last year.
The Abu Dhabi Securities Exchange dropped 1.36% to finish the year at 2 719.87 points. In the first six months it lost 8.4%, before recovering in the second half.
The market added 14.8% last year after shedding 47.5% in 2008.
Bahrain Stock Exchange again ended in the red, dropping 1.8% to close at 1 432.26 points. In 2009, it dived 19.2%.
The other small Muscat Securities Market gained 6% to finish the year at 6 755.0 points after gaining 17% in 2009.
