Global equities recorded a strong performance in the week on the back of better than expected economic data and improving trend in COVID-19 cases. Manufacturing data from the US, Europe, and China were encouraging and factory orders rose more than expected during the previous month.
However, the slowdown in US jobs growth in July 2020 did not have materialistic impact on sentiments as investors focused on improving macroeconomic conditions. Oil prices rose by 2.54% during the week on the back of falling US stockpiles, coupled with anticipated improvement in demand from better than expected growth in manufacturing activity.
For the MENA region, equity markets performed positively, following the sentiments in the global markets as investors resumed trading post the Eid Al-Adha holidays. In terms of performance, 4 out of the 7 regional indexes closed in green while 2 closed in red, and Oman remained closed for the week. Dubai was the best performing index regionally with gains of 2.77%, followed by 2.06% in Egypt, 1.27% in Abu Dhabi, 0.55% in Saudi Arabia; while Kuwait and Bahrain recorded losses of 0.32% and 0.13%, respectively.
Going forward, equity markets could continue the upward trajectory on the back of improving macroeconomic environment and encouraging trend in COVID-19 cases. However, investors should remain cautious and focus on companies with the potential to gain market share and strengthen their position within its industry.
For the MENA markets, stabilization in the non-oil private sector during July 2020 was encouraging and a continued trend in the coming months could drive the regional markets higher. Investors must remain prudent in terms of stock allocations, shifting their orientation to value stocks, especially those stocks that have the potential to emerge stronger from the pandemic.
-Ends-
About Allied Investment Partners PJSC
Established in 2007, Allied Investment Partners PJSC is licensed by Securities and Commodities Authority, UAE and is a leading investment firm providing various services like Asset Management, Alternative Investments, Wealth Management, Securities and Custody Services, Corporate Finance and Investment Banking Advisory.
For more information, please visit
For media enquiries, please contact Matrix Public Relations
Krishika Mahesh: Krishika@matrixdubai.com
Or call: 04 34 30 888
© Press Release 2020
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
