Returns in the GCC equity markets showed signs of significant momentum in April at 16.83 percent from 7.94 percent return in March. A report by Kuwait Financial Center (Markaz) on Thursday said all the GCC markets posted positive returns in April. Five of the six GCC markets posted returns in excess of 10 percent. Saudi Arabia led the gainers with a return of 20.8 percent. In March, due to the reversal in trend, the momentum model was overweight on all the markets, due to which it was leveraged by 20 percent. This had led to significant out performance of the model as compared to the SAA. The out performance for the month of April was at 3.32 percent and for the year at 6.46 percent. Similarly, in the case of emerging markets and the world indices, the trend of momentum continues to be strong post the reversal in March. The MSCI world index increased by 11.9 percent after posting a gain of 8.29 percent in March. The MSCI emerging market index too increased by 12.8 percent after posting a return of 10.4 percent in March. The volatility levels continue to be lower as compared to the recent peak witnessed in November 2008. However, on a M-o-M basis, there has been an increase in volatility for five of the seven markets (ADSM and DFM are counted as two different markets) in the GCC region. Among the developed and emerging markets, the volatility levels continue to witness a decline. Volatility levels continue to be lower than the recent historic peaks witnessed in October-November 2008. For the ex-GCC indices such as the S&P 500 and MSCI EM, the volatility levels are down by 58 percent and 65 percent, respectively, from their recent peaks in 2008. MVX for individual markets such as India and China have also witnessed declines by 56 percent and 57 percent respectively. For the GCC region, the MSCI GCC index is lower by 26 percent from its recent peak. However, majority of the markets ex-Kuwait and Qatar has witnessed increases in volatility levels in April on a M-o-M basis. Bahrain which posted a continuous decline in volatility levels from September 2008, witnessed its volatility levels increase by almost 2 times in April alone. Saudi Arabia's Tadawul All-Share Index (TASI) surged 20 percent in April after gaining 7.28 percent in March. The Tadawul's gain was led by the Al Rajhi Bank and Samba, which gained 37 percent and 34 percent, respectively, for the month. For March, the total volume and value traded stood at approximately 4.9 billion and $23.34 billion, respectively, an M-o-M decrease of 9 percent and 14 percent, respectively. Concentration of the top five stocks in terms of volume and value traded to total market capitalization stood at 19 percent. The Kuwait Index gained 11 percent in April, slightly higher than its March gain. All sector indices were up, the month was led by real estate, industrial and services, which gained 17.7 percent, 17.3 percent, and 10.4 percent, respectively. The total volume traded in Kuwait surged by 93 percent in April to 15.5 billion shares, while total value traded spiked 96 percent to $9.8 billion in the same month. Concentration of the top five stocks in terms of volume and value traded to total market capitalization stood at 2 percent and 24 percent, respectively. The UAE markets ended the month on a positive note. The Dubai Financial Market (DFM) gained 2.36 percent while the Abu Dhabi Exchange (ADX) gained 1.55 percent. On a market cap weighted basis, the markets were flat. Dubai's gain was boosted by 16.8 percent and 11 percent gains in Investments and the real estate sectors while banks fell 6 percent. Abu Dhabi's gain was boosted by banks, which were up 8.5 percent while Insurance dipped 3.07 percent. The total volume traded in UAE increased 32 percent to 15.3 billion, whereas the total value traded was up 43 percent to $5.5 billion in April. Concentration of the top five stocks in terms of volume and value traded to market capitalization was 9 percent and 13 percent, respectively. The Doha Stock Market (DSM) was up 12 percent in April after gaining 10 percent in March. Gains on the DSM were led by the services and banking sectors, which gained 25.5 percent and 12.6 percent, respectively, in the month. In April, total value traded on the DSM declined 2 percent to equal $2 billion while total volume traded was down 4 percent to 306 million. Concentration of the top five stocks in terms of volume and value traded to market capitalization was 13 percent and 38 percent, respectively, in April. The Muscat Securities Market (MSM) gained 10 percent in April after losing 4.64 percent in March. Market gain was led by the Industrial sector, which jumped 21 percent in the month. During April, total volume traded jumped 63 percent to 655 million while total value traded increased 12 percent to $533 million. The index was flat in April after gaining just 1 percent in March. Investment sector lost 5.86 percent for the month while commercial banks gained 7.89 percent. In April, total value traded increased 35 percent to $37 million while total volume decreased 27 percent to 65 million. Concentration of the top five stocks in terms of volume and value to the market capitalization was 9 percent and 12 percent, respectively. __
