Bahrain’s stock market ended 2022 up 5.5% year-on-year, posting the second consecutive annual growth in a year marked by high volatility.
Analysis from Kuwait-based Kamco Invest shows that the Bahrain Stock Exchange All Share Index closed the year at 1,895.27 points, ranking third in the GCC in terms of annual returns in 2022, after rising exceptional 20.6% in 2021.
During the year, the benchmark reached a 14-year high in March 2022 at 2,122.51 points, but steady declines during the second quarter of 2022 took the index to a low of 1,806.3 points at the end of June 2022.
The bullish trend returned in the third quarter of 2022, but the last quarter was largely subdued to see gains only towards the end of the year.
Sector performance was mixed between winners and losers.
Three of the Bahrain Stock Exchange’s (BHB) seven indices rose during the year, with the other four falling to falsify the trend.
The materials sector, which has only one constituent company (Alba), posted the largest annual growth on the stock exchange during the year, jumping 36.2% to close at 5,007.66 points.
The jump in Alba’s share price underscored the company’s strong financial performance during the year.
The aluminum smelter reported 9M-2022 net profit of BD 376.7 million compared to BD 270.7 million in 9M-2021.
Gulf Hotel Group and Nass Corp followed Alba as the second and third biggest gainers posting increases of 19% and 11.4% in their stock price, respectively.
Among the decliners, Ithmaar Holding tops the charts, with its share price falling 39.4% last year, followed by Esterad Investment and Bank ABC which saw declines of 31% and 27% respectively. .8% of their share price.
Trading activity at BHB fell sharply in 2022, with the total value traded falling 33.8% to BD 221 million from BD 331 million in 2021.
Similarly, the total annual volume traded on the exchange fell 44.5% to 489 million shares in 2022, from 880 million in 2021.
Alba leads the annual traded value chart with BD 64.3 million of shares traded during the year, followed by Ahli United Bank and GFH Financial Group with BD 57.6 million and BD 36.4 million respectively. of traded stock comics.
In terms of volume traded during the year, GFH Financial Group was the leader, recording 118.4 million shares traded during the year.
Al Salam Bank-Bahrain and Ahli United Bank followed in second and third place, with 109.8 million and 61 million of their respective shares traded in 2022.
GCC equity markets once again outperformed their global peers in 2022 posting a smaller decline during the year compared to the double-digit declines of most major global markets.
The MSCI GCC index fell 6.4% during the year after recording one of the strongest gains globally in 2021.
The index trend showed steady gains during the first quarter of 2022, peaking in the second week of April 2022. Thereafter, the index largely showed a downward trend for the rest of the year. ‘year.
The GCC index also mirrored the trend in oil prices, with Brent trending south since June 2022.
At the country level, the performance of individual GCC markets was mixed and Abu Dhabi was again the top performer in the region, posting a return of 20.3%.
The GCC sector performance chart only showed gains for three sectors, while ten of the remaining sectors recorded double-digit declines.
Topping the annual performance charts with a return of 21.2%, the healthcare index was followed by the utilities and capital goods indices which posted gains of 9.9% and 2. 1%, respectively.
On the other hand, the pharmaceuticals and biotechnology index saw the largest decline during the year at 43.7%, followed by consumer durables and clothing and the diversified financials index with losses. double-digit declines of 32.2% and 21.9%, respectively.
Trading activity over the year showed a uniform upward trend in large-cap equity trading, which resulted in lower traded volume, but traded value showed strong growth across most steps.
Total value traded was $686.7 billion during the year from $790 billion in 2021, while volume traded reached 261.4 billion shares during the year from $309 billion. shares in 2021.
Saudi Arabia and Bahrain were the only markets to see a decline in value traded, while other markets showed healthy growth over the year.
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