Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

GCC markets set to post 12% growth in earnings  Join our daily free Newsletter

MENAFN - Khaleej Times - 25/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Driven by a resurgent real estate sector, and underpinned by robust banking and financial services, the Gulf stock markets are poised to record 12 per cent earnings growth in 2014, analysts said



The Gulf market outlook for 2014, based on earnings potential, market liquidity, valuation attraction, economic factors and geopolitical developments in each individual country, said corporate earnings which have been moderate for the past years in Saudi Arabia and Qatar could surprise on the positive side in 2014



The market outlook report by Kuwait Financial Centre 'Markaz' estimated full year earnings growth in 2013 at 10 per cent 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.



Economic growth in GCC is expected to sustain at four per cent in 2014, driven largely by social spending, initiation of infrastructure projects and large-scale subsidies amidst unrest in neighboring nations, said Markaz



"At the end of first half of 2013, we had neutral views on Saudi Arabia and Kuwait and positive views on the 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. The UAE markets, Dubai and Abu Dhabi, though positive surpassed our expectations," said the report



In 2013, GCC markets had a phenomenal year with most markets registering double-digit gains. Performance of GCC markets was on par with developed markets and better than emerging markets. The S&P GCC Composite index, said Markaz



UAE markets did exceptionally well in 2013 on the back of an upgrade in status to emerging market by MSCI and S&P Dow Jones. Dubai index producing phenomenal returns of 107.7 per cent while Abu Dhabi index registered strong gains of 63.1 per cent in 2013



"Strong expansion in price earnings multiple amidst robust earnings growth on the back of healthy rebound in real estate markets and revival of business confidence sustained the rally," said Markaz



According to Ernst & Young, IPO activity in the region is expected to remain on a firm footing in 2014 following a strong uptick in listings in the last quarter of 2013



Better market fundamentals are expected to support a solid start to 2014 for new offerings, said Phil Gandier, Mena transaction advisory services leader. Markaz noted that the highlight of 2013 was the long expected MSCI upgrade of the UAE and Qatar to Emerging Market status. The move is likely to take effect in second quarter of 2014, with the UAE accounting for 0.4 per cent of the index and Qatar accounting for 0.45 per cent. Introduction of mortgage law in Saudi Arabia; market friendly initiatives taken by new CMA head, including synchronising Saudi market timings in line with other GCC markets and review of subsidies program in Kuwait to rationalise expenditures and ensure sustainability of fiscal policy for the long-term were significant positive developments, the report noted



Increasing oil production elsewhere and easing of sanctions in Iran is further expected to put downward pressures on global oil price, said Markaz. "With most GCC nations holding back their investments to ramp up production capacity, oil-based real gross domestic product, or GDP, growth is expected to slump from 5.4 per cent in 2012 to 0.4 per cent 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 per cent), Qatar (44.2 per cent) and Oman (19 per cent). 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



Markaz expect 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," it said

 


Khaleej Times




  MENA News Headlines
 Sep 22 2014 - Kuwait make strong start at AsiadArab Times
(MENAFN - Arab Times)  KUWAIT CITY Sept 20 (Agencies): Kuwaiti national teams for volleyball handball and basketball had a powerful start at the 17th Asian Games which officially started two ...

 Sep 22 2014 - West Ham 'inflict' fresh EPL misery on LiverpoolArab Times
(MENAFN - Arab Times) LONDON Sept 20 (AFP): Liverpool suffered a second successive Premier League defeat after losing 3-1 away to West Ham on Saturday. Brendan Rodgers's side had lost 1-0 at home to ...

 Sep 22 2014 - Ronaldo Bale combine for 5 in 8-2 routArab Times
(MENAFN - Arab Times) MADRID Sept 20 (AFP): Cristiano Ronaldo scored a hat-trick as Real Madrid equalled their biggest ever away win in La Liga with a 8-2 thrashing of Deportivo la Coruna on ...

 Sep 22 2014 - N.Korean lifter breaks recordArab Times
(MENAFN - Arab Times) INCHEON South Korea Sept 20 (Agencies): Hosts South Korea were the Asian Games' surprise first-day medal leaders on Saturday but they had to share the limelight with China and ...

 Sep 22 2014 - 'Enjoying the return to music'Arab Times
(MENAFN - Arab Times) NEW YORK Sept 20 (AFP): Releasing a new album near his 80th birthday Leonard Cohen cheekily addresses his age in the very first song intoning 'It's not because I'm old ... I ...

 Sep 22 2014 - QFC Authority Seeks Public View on Rule ChangesQatar News Agency
(MENAFN - QNA) Qatar Financial Centre (QFC) Regulatory Authority has released a consultation paper seeking public comment on proposed rule changes that amend the approved individuals regime (AI ...

 Sep 22 2014 - $88.5 Million Grant from Qatar for 'Recovery, Reconstruction' in DarfurQatar News Agency
(MENAFN - QNA) Qatar signed Monday an agreement at the Permanent Mission of the State of Qatar to the United Nations, to provide a grant of $88.5 million to the United Nations multi-partner trust ...

 Sep 22 2014 - HE the Premier Meets US AmbassadorQatar News Agency
(MENAFN - QNA) HE the Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani met on Monday morning with HE Ambassador of the United States of America to Qatar Dana ...

 Sep 22 2014 - Kyrgyzstan Parliament Speaker Meets Qatari AmbassadorQatar News Agency
(MENAFN - QNA) Kyrgyzstan Parliament Speaker Asylbek Jeenbekov met Monday with Qatari Ambassador to Kyrgyzstan Mohammed Arar Omeer Alramazani Al-Nuaimi. They discussed bilateral relations and the ...

 Sep 22 2014 - CMU Qatar Opens 11th Year With Record 427 StudentsQatar News Agency
(MENAFN - QNA) Carnegie Mellon University in Qatar welcomed 112 new students for the 2014-2015 academic year, growing from an inaugural class of 41 students in 2004 to 427 students from 40 different ...

more...


 






Google

Click to Apply

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help