A surge in the shares of most listed companies boosted the wealth of Gulf stocks investors by at least $42 billion (Dh154bn) in the first week of June, more than the combined annual oil incomes of Qatar, Oman and Bahrain, official figures showed yesterday.
The combined market capitalisation of the seven bourses in the six-nation Gulf Co-operation Council (GCC) jumped by around $42.5bn in the first five working days of this month after a rise in all their indices, showed the figures by the Abu Dhabi-based Arab Monetary Fund (AMF), which tracks the daily share movement in the Arab world's 16 official stock exchanges.
From $1,127.54bn at the end of May, the market capitalisation of the GCC bourses swelled to $1,170.05bn on Thursday, the report showed. The UAE, Saudi Arabia and Kuwait emerged as the main gainers, while there modest profits in the other three markets in Qatar, Bahrain and Oman.
"There have been fluctuations in all GCC markets over the past months but in the end, the investors will be winners," said Ziad Dabbas, share dealing adviser at the government-controlled National Bank of Abu Dhabi.
"Quarterly results have already indicated a very good year for the listed companies not only in the UAE but on other Gulf states… so you can expect high return for the share investors in the region at the end of the year."
In the UAE, both Dubai and Abu Dhabi bourses were strong performers in the first week of June, with their combined market capitalisation gaining around $10bn, including a $6bn growth in Dubai.
Saudi Arabia's Tadawul, the Middle East's largest bourse in terms of capitalissation and turnover, surged by around $25bn after several months of turbulence last year while Kuwait gained about $8bn.
The GCC market capitalisation on Thursday accounted for around 83 per cent of the total Arab capitalisation of nearly $1,405bn, according to the AMF.
The report showed turnover in the GCC gained momentum ahead of an expected long lull during the summer holiday.
It stood at around $19bn during the first five working days of June, compared to a weekly average $12bn during the previous two months.
Turnover, the value of traded shares, stood at $2.05bn in Abu Dhabi, $1.86bn in Dubai, $2.07bn in Qatar, $2.38bn in Kuwait, $10.7bn in Saudi Arabia, $217 million in Oman and around $25.9 million in Bahrain.
The GCC turnover during the first week of June accounted for more than 88 per cent of the total value of shares traded in the Arab world's 16 bourses.
Institutions net buyers
Dubai Financial Market yesterday said foreign investors, or non-UAE nationals, bought shares worth Dh2.89 billion, comprising 35.8 per cent of the total value of stocks traded during the week ended Thursday.
They sold Dh2.67bn worth of stocks in the week, comprising 33 per cent of the total value of stocks traded. Net foreign investment on the market reached Dh228.9 million during the same period. Institutional investors bought stock worth Dh2.64bn comprising 32.7 per cent of the total value of stocks traded during the period.
The value of stocks sold by institutional investors during the period reached Dh2.04bn, which constitutes 25.2 per cent of the total value of stocks traded. Net institutional investment on the market reached Dh601.7m.