LOC14:54
11:54 GMT
KUWAIT, July 5 (KUNA) -- GCC markets saw mixed performance during June-15 with Saudi Arabia and Kuwait witnessing a downward trend since the beginning of the month whereas the rest of the markets ended with a positive monthly return, an economic report said.
The steep decline in the Saudi stock indices and total trading activity came despite the stock exchange opening up to foreign investors owing to multiple factors that included continued weakness in oil price, minimal response from QFI to the new foreign investment norms as well as the Greece crisis that affected stock markets across the globe during the last week of the month, said the report by KAMCO Investment Company on Sunday.
The opening of the Saudi stock market to foreign investor saw lackluster response as investors expressed interest but did not rush to take positions, it said, adding only two QFIs were granted licenses by the end of the month and around six more applications were under process.
The general view was that the market would attract additional investment but it would be gradual and not immediately in the short term, it stated.
Oil price, which declined by almost 3 percent during the month, continued to weigh on the Saudi stock market's performance, it noted.
Greece's default on IMF loan affected Euro exchange rate against the USD resulting in oil price adjustment, which is an added concern for oil-based economies like Saudi Arabia and Kuwait, in addition to the impact of the growing political unrest in the region on the markets, it showed.
Trading activity during 1H-15 was reported significantly below the corresponding period in 2014, it made clear.
Total value traded declined from USD 437.1 billion in 1H-14 to USD 328.4 billion in 1H-15, a decline of almost 25 percent, it noting.
Total value traded declined for all the GCC markets with the steepest decline recorded in the UAE that recorded a USD 57 billion decline in value traded during 1H-15 to reach USD 93 billion, followed by Saudi Arabia that recorded a decline of USD 33 billion to reach USD 266.3 billion, it pointed out. (end)
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