Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Markaz Full year earnings for GCC region in 2014 estimated at 12%  Join our daily free Newsletter

MENAFN Press - 22/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) Kuwait Financial Centre "Markaz" recently released its outlook on GCC markets for the full year of 2014. In this research report, Markaz analyses the performance of GCC stock markets in 2013 and provides an outlook for 2014 based on earnings potential, market liquidity, valuation attraction, economic factors and geopolitical developments, for each individual country.



The report expects full year earnings in 2013 to grow by 10% for GCC region. Going into 2014, we believe real estate sector would be the driving factor underpinned by banking and financial services. Petrochemicals sector is expected to remain muted in 2014. Corporate earnings which have been moderate for the past years in Saudi Arabia and Qatar could surprise on the positive side in 2014. We estimate full year earnings for GCC region in 2014 to be at 12%



"At the end of first half of 2013, we had neutral views on Saudi Arabia and Kuwait and positive views on UAE, Qatar, Oman and Bahrain. We were mostly right except for Saudi Arabia, which rallied higher as talks of regulatory reforms to open up the equity market for foreign investor's direct participation boosted sentiments. UAE markets, Dubai and Abu Dhabi, though positive surpassed our expectations" states the report.



GCC markets had a phenomenal year with most markets registering double digit gains in 2013. Performance of GCC markets was on par with developed markets and better than emerging markets. The S&P GCC Composite index closed at 118.6, gaining 24.4% in 2013.



UAE markets hogged the limelight in part due to inclusion in 'MSCI Emerging Index', with Dubai index producing stellar returns of 107.7% and Abu Dhabi index registering strong gain of 63.1% in 2013. Strong expansion in P/E multiple amidst robust earnings growth on the back of healthy rebound in real estate markets and revival of business confidence sustained the rally. Qatar stock index which was also included in the 'MSCI Emerging Market' index returned 24% in 2013. GCC heavyweight, Saudi Arabia ended the year with a 31% gain. Oman and Bahrain recorded healthy gains in the range of 17% to 18% in 2013. In Kuwait, while KSE price index delivered a gain of 27.2% Kuwait weighted index returned 8.4%



The highlight of 2013 was the long expected MSCI upgrade of UAE and Qatar to Emerging Market status. The move is likely to take effect in Q2 of 2014, with UAE accounting for 0.4 percent of the index and Qatar accounting for 0.45 percent. Introduction of mortgage law in Saudi Arabia; market friendly initiatives taken by new CMA head, including synchronizing Saudi market timings in-line with other GCC markets and review of subsidies program in Kuwait to rationalize expenditures and ensure sustainability of fiscal policy for the long-term were significant positive developments.



Economic growth in GCC is expected to sustain at 4% in 2014, driven largely by social spending, initiation of infrastructure projects and large-scale subsidies amidst unrest in neighboring nations. Increasing oil production elsewhere and easing of sanctions in Iran is further expected to put downward pressures on global oil price. With most GCC nations holding back their investments to ramp up production capacity, oil-based real GDP growth is expected to slump from 5.4% in 2012 to 0.4% in 2013.



Though the breakeven price of oil is still much lower than the prevailing market price, the rates at which the breakeven price had increased over the past two years is alarming, particularly in the case of Kuwait (32.6%), Qatar (44.2%) and Oman (19%). Ongoing shale gas revolution in US, slowdown in commodity super cycle and a sluggish global outlook presents immense challenges for GCC region which has been excessively reliant on oil receipts to fund their economy in the long-term.



Inflation in GCC is expected to rise only marginally from 2013 levels, as commodity prices (especially food) are relatively benign. Fiscal surplus though robust is expected to be on the declining trend, as government expenditures keep raising while oil revenues remain moderate. Valuation, on a standalone basis, remains cheap in Oman and Bahrain. Though UAE witnessed a strong rally, its P/E multiple when viewed in conjunction with expected earnings growth remains attractive


About Kuwait Financial Centre “Markaz”
Kuwait Financial Centre K.P.S.C "Markaz", with total assets under management of over KD 1.04 billion as of September 30, 2013, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997.

 


MENAFN Press




  MENA News Headlines
 May 22 2015 - Arab info. ministers agree to promote culture of toleranceKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Arab information ministers' council concluded its 46th session on Thursday with a final statement stressing the important role of mass media in promoting the ...

 May 22 2015 - Kuwait, Peru eye closer diplomatic ties, cooperationKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Head of the Kuwait's fourth parliamentary friendship committee MP Yousef Al-Zalzalah met with President of the Congress of the Republic of Peru Ana Maria ...

 May 22 2015 - Kuwaiti-Moroccan ties based on shared values - OfficialKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Advisor to Kuwait's Amiri Diwan Mohammad Difullah Sharrar said his country and the Kingdom of Morocco share identical cultural and historical values that formed a ...

 May 22 2015 - Kuwaiti play wins gold at Free Theater FestivalKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Kuwaiti play 'Hawel Marrah Okhra' (Try Again) won the golden award of the 10th Free Theater Festival on Thursday evening.The silver and bronze medals went to ...

 May 22 2015 - Kuwaitis proud of nat'l pavilion at Expo Milan 2015Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The spouse of Kuwait's General Consul in Milan and North Italy, Abdul-Nasser Bou-khaddour, praised here role of the Kuwaiti pavilion organizers in Expo Milan ...

 May 22 2015 - Kuwaiti Jiu Jitsu team participates in West Asia tournamentKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait's Brazilian Jiu Jitsu team will head to Beirut, Lebanon on Thursday to take part in the three-day West Asia tournament.The Kuwaiti team includes seven ...

 May 22 2015 - Kuwait ranks 4th at Fazza wheelchair basketball tourneyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait's national team lost their last game to Morocco's 44-71 at the the Seventh Fazza International Wheelchair Basketball Tournament, Dubai 2015, Wednesday ...

 May 22 2015 - OCA cancels Sri Lanka's hosting of Asian Youth Games 2017Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) President of the Olympic Council of Asia (OCA) Sheikh Ahmad Al-Fahad Al-Sabah announced Thursday that the Council has withdrawn the 3rd Asian Youth Games in 2017 ...

 May 22 2015 - Chinese peacekeeping troops head for LebanonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A new batch of Chinese peacekeeping troops and a 30-member medical team left China for Lebanon Tuesday for peacekeeping mission, state-run China Central ...

 May 22 2015 - Seven airstrikes in Syria, 14 in Iraq target ISIL - coalitionKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Coalition military forces continued to attack ISIL, conducting seven airstrikes in Syria and 14 in Iraq, the Combined Joint Task Force announced on Tuesday."In ...

more...


 






Google

Arab Advisors_12th convergence conf

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help