Quotes: 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
 May 27 2015 - European shares gain, Generali up on dividend commitmentSaudi Press Agency
(MENAFN - Saudi Press Agency) European shares rose on Wednesday after sharp declines in the previous session, with Italy's biggest insurer Generali gaining after committing to boost dividends and ...

 May 27 2015 - Crown Prince Congratulates Ethiopia's President on National DaySaudi Press Agency
(MENAFN - Saudi Press Agency) Crown Prince Mohammed bin Naif bin Abdulaziz, Deputy Premier and Minister of Interior, has sent a cable of congratulations to President Mulatu Teshome of the Federal ...

 May 27 2015 - Custodian of the Two Holy Mosques receives a message from Russian PresidentSaudi Press Agency
(MENAFN - Saudi Press Agency) The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud received a message from President Vladimir Putin of the Russian Federation.The message was ...

 May 27 2015 - IIRO Distributes SR 22 Millions Aid to Affected YemenisSaudi Press Agency
(MENAFN - Saudi Press Agency) The International Islamic Relief Organization (IIRO) of the Muslim World League (MWL) has recently distributed a variety of assistance amounting to SR 21,998,000 to ...

 May 27 2015 - Crown Prince Congratulates Nepal's President on National DaySaudi Press Agency
(MENAFN - Saudi Press Agency) Crown Prince Mohammed bin Naif bin Abdulaziz, Deputy Premier and Minister of Interior, has sent a cable of congratulations to President Dr. Ram Baran Yadav of the ...

 May 27 2015 - General Supervisor of King Salman Center for Relief and Humanitarian Works Signs Agreement with World Food ProgramSaudi Press Agency
(MENAFN - Saudi Press Agency) The Advisor at the Royal Court and General Supervisor of King Salman Center for Relief and Humanitarian Works Dr. Abdullah bin Abdulaziz Al-Rabiah signed today a ...

 May 27 2015 - Dubai announces crude oil price for AugustEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The Department of Oil Affairs of the Government of Dubai has announced that it has notified customers that the official price of Dubai crude oil to be delivered ...

 May 27 2015 - Khalifa Fund promotes Zaarie programme's productsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Senior delegates, including chefs and heads of procurements in Abu Dhabi hotels, have visited a number of farms under the Zaarie programme, which was recently ...

 May 27 2015 - Oman Crude Oil Financial Contract closes at US$62.19 at DMEEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The price of Oman Crude Oil Financial Contract, DME Oman, closed at US$62.19 a barrel for July delivery, at Dubai Mercantile Exchange at 12:30 p.m., Dubai ...

 May 27 2015 - UAE ranks first in Quality of Air Transport InfrastructureEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The United Arab Emirates has ranked first globally in Quality of Air Transport Infrastructure, according to a major annual report by the Swiss-based ...

more...


 






Google

Internatinal Property Show

 
 

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