THE ARAB MONETARY FUND ISSUES THE FOURTH ISSUE OF THE "ARAB CAPITAL MARKETS MONTHLY BULLETIN"

by **claud39** on Wed Nov 04, 2020 11:46 am

THE ARAB MONETARY FUND ISSUES THE FOURTH ISSUE OF THE "ARAB CAPITAL MARKETS MONTHLY BULLETIN"

2020-11-03

The Arab Monetary Fund issues the fourth issue of the "Arab Capital Markets Monthly Bulletin"

The Arab Monetary Fund's Composite Index of Arab money markets records a decrease of 0.66 percent at the end of October 2020 transactions

The decline in trading activity in most Arab financial markets during the month of October raised fears of the second wave of the spread of the new Corona virus and the sale of foreign investors.

Decline in value and trading volume in the Arab financial markets by 18.18% and 50.60% , respectively

As part of its efforts to develop the financial sector in the Arab countries, the Arab Monetary Fund issued the fourth issue of the "Monthly Arab Capital Markets Bulletin", which is concerned with monitoring developments in Arab financial markets based on the Arab Monetary Fund's database of Arab financial markets, and on data issued by Arab stock exchanges. . The bulletin indicated that the Arab Monetary Fund Composite Index for Arab money markets ended October 2020 transactions, down by 0.7 per cent compared to the end of September 2020, to reach 410.92 points, compared to 413.7 points recorded by the index at the end of September 2020.

This comes amid a decline in the performance indicators of most Arab financial markets by the end of October 2020, reflecting fears of the potential economic repercussions of the second wave of the spread of the new Corona virus, which affected levels of aggregate demand and commodity price trends in a number of countries of the world. The performance indicators were also affected during the past month by the net selling operations carried out by foreign investors in some Arab financial markets.

The Saudi Stock Exchange recorded a decline in the performance index for the month of October, which decreased by 4.72 percent to reach 7,907.7 points, due to a decline in the indices of a number of key sectors. The main index of the Egyptian Stock Exchange also declined by 4.31 percent, which decreased by the end of October 2020 to the level of 10515 points, compared to 10989 points by the end of September 2020, due to selling pressures to investors, which contributed to the decline in the market value by about 13.3 billion pounds.

On the other hand, the performance indicators of the Casablanca and Abu Dhabi stock exchanges recorded gains of 4.73 and 3.14 percent, respectively, during the month of October in light of the efforts made by the Casablanca Stock Exchange to attract more foreign investors to the market, and the Abu Dhabi Securities Exchange announced the licensing of new market makers. .

The month of October witnessed a decline in trading activity in the Arab financial markets, as the trading value of the financial markets listed in the composite index database of the Arab Monetary Fund decreased by 18.18 percent. Where both the Palestine and Iraq Stock Exchanges recorded the highest percentage of decline in the value of trading, while the Tunis Stock Exchange achieved the highest percentage increase in trading value, which amounted to 232.6 million Tunisian dinars at the end of October 2020, compared to 117.5 million dinars recorded at the end of September 2020, reflecting The Tunisian Stock Exchange's efforts to enhance financial education for investors.

In turn, trading volumes in most Arab financial markets listed in the Arab Monetary Fund's database for Arab money markets recorded a decline of 50.6% during October 2020, compared to the end of September 2020. The Beirut and Palestine Stock Exchanges recorded the highest percentage of decline in monthly trading volumes, amounting to 84.40. And 82.47 percent, respectively. On the other hand, the Muscat Market witnessed an increase of 72.5% in trading volume, which reached 191.86 million shares, compared to 111.22 million shares during the month of September 2020, supported by the activity of trading in the services and industry sectors.

At the market value level, the Arab financial markets witnessed a monthly decline of 4.62% during the month of October 2020, affected by the decline in nine Arab stock exchanges listed in the Arab Monetary Fund's database of Arab money markets. The Saudi stock market recorded a decrease in the market value at the end of the month of October, by 5.93 percent to reach 8640 billion riyals, compared to 9,185One billion riyals by the end of September 2020, due to the recorded decline in the market value of the shares listed in a number of major sectors in the market.

The market value of the Qatari Stock Exchange also recorded a decline at the end of October by 3.87 per cent, due to the decline in the prices of shares listed in the sectors of real estate, industry, goods, banks and financial services, thus reducing the market value of the stock exchange to 565 billion riyals at the end of October 2020, compared to about 588 billion riyals. By the end of September 2020.

On the level of the most important developments in the Arab financial markets during the month of October 2020, a number of Arab stock exchanges participated in a bell ringing event on the occasion of "Global Investor Week 2020". This came within the framework of Arab stock exchanges' keenness to enhance financial education and the relationship with investors.

Last October also witnessed the tendency of Arab stock exchanges to strengthen their interventions aimed at diversifying investment and hedging mechanisms and tools to attract a new segment of investors. Some Arab stock exchanges launched a covered short selling service, and an amendment of a package of controls related to lending and borrowing securities in the Arab financial markets was announced.

Last month also witnessed the announcement of the intention of a number of Arab stock exchanges to launch new products, most notably: margin trading, and traded priority rights, in addition to sukuk, bonds, and exchange-traded funds ( ETFs).To seek to provide more opportunities for investors to diversify their portfolios and hedge a variety of risks. New companies have also been listed in the main and parallel markets in a number of Arab stock exchanges, in addition to the joining of a number of brokerage firms, data providers and technology services, as partners to launch platforms for trading futures contracts in some Arab financial markets.

On the other hand, the Arab stock exchanges worked during the month of October 2020 to develop platforms for trading the shares of small and medium-sized companies in a way that contributes to the growth of these companies and their transition to listing in the main market. Arab countries have also continued their efforts to work on upgrading their financial markets to qualify them for inclusion in the emerging market indices.

In addition to the above, it announced Arab bourses for registering new makers markets (Market Makers) in a move aimed at raising the level of liquidity and increase investment values and volumes, to attract a new segment of investors to Arab financial markets. Some of them have also sought to increase the levels of benefit from the technical transformation in the field of financial markets by organizing the activities of issuing and trading crypto assets, and licensing some crowdfunding platforms.

The full version of the issue is available at this link

https://www.amf.org.ae/ar/bulletin/arab-financial-markets-monthly-bulletin-fourth-issue

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