Arab markets lose $57bn in Q2

Arab stock markets plunged by nearly $57 billion in the second quarter of 2012 after swelling by around $95 billion in the first quarter and the bulk of the second quarter fall was in Saudi Arabia and the UAE, according to official data.

From around $968 billion at the end of March, the combined market capitalization of the region’s 15 official bourses dipped to nearly $911 billion on July 4, showed the figures by the Abu Dhabi-based Arab Monetary Fund (AMF).

Saudi Arabia’s Tadawul, by far the largest and busiest bourse in the Middle East, collapsed by nearly $51 billion from around $410 billion to $359 billion.

Abu Dhabi’s market capitalization receded from around $76 billion to $66 billion while Dubai’s bourse fell from $52.8 billion to $48.5 billion.

Kuwait was among a handful of Arab markets which performed well in the second quarter, soaring from $82 billion to $104 billion in the same period, said the AFM, a key Arab League financial organization.

Qatar also edged up from around $127 billion to $128 billion while the smaller GCC markets of Bahrain and Oman shrank respectively from $16.7 billion and $27.3 billion to $16 billion and $21.2 billion.

Outside the Gulf, Egypt’s bourse continued its slide because of the political events, losing a further $three billion to reach $57 billion at the end of March.

Morocco’s market, another key bourse outside the Gulf, declined by around $eight billion to $52 billion while there was a drop of $two billion in Jordan. Lebanon’s market surprisingly soared by around $six billion to $16 billion despite the partial spillover of the conflict in nearby Syria.

Arab stock markets gained nearly $95 billion in the first quarter of 2012 after plummeting by around $107 billion in 2011 because of the political unrest sweeping the region, according to the AMF, which tracks regional shares.

The bulk of the Q1 growth was in Saudi Arabia, which gained nearly $70 billion while there were slight increases in the UAE and other Gulf markets.

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