The Bahrain Bourse All Share Index snapped a losing streak, surging 2.8 per cent to 2,012.77 points in September and posting the third-best performance among GCC markets.

Analysis by Kuwait-based Kamco Invest shows that this strong monthly performance lifted the year-to-date index return into positive territory at 2.1pc.

Five of the seven sectoral indices posted gains. The Materials Sector Index, led by Alba, the sole constituent, soared 13.3pc after Saudi Arabia’s Ma’aden expressed interest in merging aluminium operations. The Industrial Index followed with a 3.9pc increase, driven by gains in APM Terminal and Nass Corp.

Alba emerged as the top-performing stock, rising 13.3pc. Bahrain Car Park and Bank ABC also posted double-digit gains. On the downside, Bahrain Duty Free Complex Company led decliners, falling 6.2pc.

Monthly trading volume and value declined from the previous month’s mixed liquidity. Total volume reached 87 million shares, with Al Salam Bank-Bahrain accounting for a significant portion. Al Salam Bank-Bahrain also led by value traded.

In economic news, Bahrain attracted foreign investment with BlackRock acquiring a minority stake in the Saudi Bahrain Pipeline Company. This investment is expected to boost Bahrain’s strategic infrastructure assets and carbon reduction efforts.

Non-oil exports declined 8pc in August to BD298m, while non-oil imports fell 7pc to BD494m. Saudi Arabia remained the top export destination, accounting for 22pc of non-oil exports. China remained the top import country.

Zooming out, GCC equity markets largely outperformed in September, tracking a broader global rally fuelled by the US Federal Reserve’s unexpected 50 basis point rate cut. While geopolitical tensions in the Middle East had a limited effect, the lower funding costs are expected to boost investment across various sectors.

The MSCI GCC index gained 0.9pc for the month, with Dubai leading the way at 4.1pc. Saudi Arabia’s TASI rose marginally, while Oman and Kuwait saw slight declines.

Despite the September gains, the MSCI GCC index remains marginally down for the year. However, Dubai’s General Index has surged 10.9pc, outperforming other GCC markets.

Sectorally, utilities and pharma/biotech led with gains of 10.6pc and 7.5pc, respectively. Retailing also saw a strong performance, up 5.2pc. Larger-cap sectors like banks and energy declined, while insurance experienced the steepest drop.

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