Dubai, UAE- Five of seven GCC equity market indices under coverage ended 2024 on the rise, according to Argaam’s in-depth report on GCC equity markets.
Dubai Financial Market (DFM) led its peers, wrapping up 2024 with an annual rise of 27 percent and adding 1,099 points to close at 5,158.7.
Boursa Kuwait came in second with a 5 percent annual hike, ending 2024 at 7,838.8 points with a 362-point gain. Muscat Stock Exchange (MSX), Bahrain Bourse, and Tadawul All Share Index (TASI) indices edged up by around 1 percent each compared to 2023 levels.
On the other hand, Qatar Stock Exchange (QSE) fell 2.4 percent to 10,571.1 points, losing 259.5 points in 2024. Abu Dhabi Securities Exchange (ADX) followed with a 2 percent annual decline, closing at 9,419 points with a 159-point drop.
The 2024 gains across GCC equity markets were buoyed by several influential factors, most notably the rise in most global markets particularly in the US, and three Federal Reserve rate cuts during the year.
Traded values in GCC markets for 2024
GCC traded values rose at an annualized rate of about 29 percent in 2024, reaching $699.9 billion, up from $541.2 billion in 2023.
These gains were fueled by higher traded values for most Gulf equity markets. Saudi Arabia’s TASI spearheaded this increase with a 40 percent annual leap to total $496.6 billion by 2024-end, compared to $355.5 billion in 2023. Boursa Kuwait followed, up 43% on a yearly basis to $48.3 billion in 2024, from $33.8 billion in the year before.
Bahrain Bourse, MSX, ADX, and DFM recorded annual gains of 52 percent, 11 percent, 7 percent, and 5 percent, respectively, in 2024.
However, QSE slumped at an annualized rate of 15 percent, with its traded value dropping to $29.3 billion in 2024, from $34.4 billion in the previous year.
Key metrics in 2024
By the end of 2024, the overall GCC market capitalization added $126.53 billion to $2.37 trillion, up from $2.25 trillion in 2023.
DFM had the lowest 12-month P/E ratio among GCC markets at 9.6x, followed by MSX at 10.2x. TASI and ADX recorded the highest P/E ratios at 23.95x and 23.52x, respectively.
