Bahrain Bourse sees mixed performance

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The Bahrain Bourse All Share Index edged down 0.7 per cent in June, closing the month at 2,025.49 points.

Analysis by Kuwait-based Kamco Invest shows that sectoral performance was mixed, with five of seven declining. The Real Estate Index rose 3.4pc, driven by a gain of similar size in Seef Properties, a major constituent. However, heavyweight sectors like financials (-0.3pc) and materials (-1.7pc) weighed on the overall index. Consumer discretionary companies suffered the most, falling 4.5pc to 3,338.5 points, as key companies like Bahrain Duty Free Shop Complex (-9.3pc) and Gulf Hotel Group (-3.5pc) saw share-price declines.

Esterad Investment Company led gainers with a 9.8pc rise, followed by Al Salam Bank (6.3pc) and Seef Properties (4.7pc). Ithmaar Holding topped decliners, shedding 20pc, followed by Bahrain Duty Free Complex (-9.3pc) and Bahrain National Holding (-7.2pc).

Trading activity slumped in June. Total volume traded plunged 89.3pc to 28.5 million shares compared to 267.7m in May. Total value traded also fell sharply, down 79.5pc to BD8m from BD39.2m.

Al Salam Bank-Bahrain led by volume (11.7m shares), followed by GFH Financial Group (3.2m) and BBK (1.9m). By value traded, Al Salam Bank-Bahrain again topped the list (BD2.8m), followed by Kuwait Finance House-Bahrain (BD1.9m) and BBK (BD1m).

In other news, Fitch Ratings affirmed Ahli United Bank’s long-term issuer default rating at ‘BB+/Stable’ but downgraded its viability rating to ‘bb-’ due to the sale of its key subsidiary to Kuwait Finance House.

Zooming out, the MSCI GCC index finally saw a positive month in June 2024 after a string of losses, mirroring mixed market sentiment globally. This uptick comes amidst conflicting signals on global inflation, although recent US economic data hints at a possible near-term rate cut, a factor that typically boosts equities.

The index climbed 3.4pc in June, fuelled primarily by strong gains in Qatar and Abu Dhabi. Qatar’s benchmark led the surge, recovering from consecutive months of double-digit declines – the worst performance in the GCC so far this year. The Qatari index rose 7pc in June, bringing its YTD losses down to 8pc, but still the largest drop in the region.

Low-single-digit gains in Saudi Arabia and Dubai further bolstered the regional rebound. However, declines in Oman, Kuwait, and Bahrain partially offset the positive momentum. Despite these monthly dips, the three markets remain positive year-to-date, albeit with modest gains. Overall, the MSCI GCC index is down a relatively smaller 5.1pc for the first half of 2024, reflecting a balance between individual market gains and losses.

Sector-wise, the insurance industry led the pack with a robust 10.6pc monthly rise in June. Healthcare and F&B followed closely with gains of 8pc and 5.9pc, respectively. Large-cap sectors like banks and telecom saw more muted increases, clocking in at 4.6pc and 3.3pc, respectively.

Utilities bore the brunt of sectoral declines, falling 4.8pc. Materials and consumer durables also slipped, down 1.8pc and 0.7pc, respectively. The Energy Index also witnessed a marginal 0.6pc decline.