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THE ARAB MONETARY FUND ISSUES THE SEVENTH ISSUE OF THE "ARAB CAPITAL MARKETS MONTHLY BULLETIN"
The Arab Monetary Fund’s Composite Index of Arab Financial Markets records an increase of 1.5 percent at the end of January 2021 transactions in light of the continuing recovery of a number of Arab financial markets
The rise of ten Arab stock market indices during January, topped by the Abu Dhabi Securities Exchange, taking advantage of the announcement of the new market strategy aimed at enhancing market value and attracting liquidity
Arab stock exchanges continue their efforts towards developing SMEs' exchanges, and continue their endeavors to use modern financial technologies and promote digital transformation and financial culture
As part of its efforts to follow up on the developments of the financial sector in the Arab countries, the Arab Monetary Fund issued the seventh issue of the "Monthly Arab Capital Markets Bulletin", which is concerned with monitoring developments in the Arab financial markets based on the Arab Monetary Fund's database of Arab financial markets, and on the data issued by the stock exchanges. Arabic. The bulletin indicated that the Arab Monetary Fund Composite Index for Arab money markets ended January 2021 transactions, up by 1.5 percent compared to December 2020, to reach about 432.28 points at the end of January 2021, compared to 425.81 points at the end of December 2020 .
Performance indicators recorded an increase in the number of Arab stock exchanges at the end of January 2021, thus keeping the financial markets in a number of Arab countries on the gains achieved at the end of 2020, reflecting the improvement recorded in the liquidity indicators of these stock exchanges. The movement of anticipation of the annual business results of the companies listed on the Arab stock exchanges also contributed to the increase in the indicators of trading values on the stock exchanges last month, supported by the increase in a number of indicators of the listed sectors, including: services, commodities, health care, technology companies, real estate and banks. The continued improvement in the performance of global stock exchanges and the relative increase in oil prices during January 2021 had a positive impact on the performance of Arab stock exchanges, in addition to hopes for continued economic recovery in a number of Arab countries .
In this context, the performance indicators of ten Arab stock exchanges recorded an increase by the end of January 2021, led by the Abu Dhabi Securities Exchange, whose index witnessed a 10.86 percent increase, taking advantage of the launch of the "ADX One" strategy aimed at enhancing the market value and attracting new sources of liquidity. In contrast, the stock exchanges of Dubai, Egypt, Damascus, Palestine, Kuwait, Amman and Casablanca recorded an increase ranging between 3.0 and 6.5 percent. The indices of both Saudi Arabia and Qatar stock exchanges also witnessed an increase of 0.15 and 0.36 percent, respectively. On the other hand, the performance indicators of four Arab stock exchanges witnessed a decline at the end of January 2021, as the stock markets of Muscat, Bahrain, Tunisia and Iraq recorded a decline of 0.15 to 4.70 percent .
On the level of trading value, it recorded a decline in eight Arab financial markets listed in the Arab Monetary Fund database during the month of January 2021, as both Tunis and Beirut recorded a decrease in the trading value, reflecting the suspension of trading on the Beirut Stock Exchange during the month of January due to the conditions of total closure. Due to the Corona pandemic, while the decline in the indices of the sectors of industry, services and financial companies, rates ranging between 2.73 and 5.10 percent, had an impact on the decline in the value of trading on the Tunis Stock Exchange. On the other hand, the Dubai and Iraq stock exchanges witnessed the highest increase in the value of trading, as the increase in the trading of shares listed on the Dubai market in the sectors of investment, financial services, telecommunications, consumer goods and banks had an impact on the increase in the total trading value. The impact of anticipating annual business results on the Iraqi market was also reflected in the high trading rates during the month, which contributed to enhancing the trading movement .
In terms of trading volumes in the Arab stock exchanges, they witnessed a variation during the month, as seven Arab stock exchanges recorded an increase, led by the Iraq Stock Exchange, to reflect the increase recorded in the indicators of a number of sectors, including: the industrial sector, the financial sector, and the services sector. On the other hand, eight Arab stock exchanges witnessed a decrease in the level of trading volume, as the Beirut Stock Exchange recorded the highest percentage of decline affected by the suspension of trading in the stock exchange during the month of January 2012 .
At the level of market value, it achieved an increase of 0.627% at the end of January 2021, to continue the stability it witnessed during November and December 2020, thus maintaining the improvement recorded at the end of 2020. In this context, the Abu Dhabi Securities Exchange recorded the largest increase In the market value at the end of January 2021 transactions, which increased by 8.46 percent, to reach about 805 billion dirhams, compared to 742 billion dirhams, achieved at the end of December 2020. In the same context, the Egyptian Stock Exchange recorded gains in its market value by the end of January 2021 to achieve a growth of 7.0 percent, reflecting the recorded increase in the market value of the shares listed in the real estate, banking and basic materials sectors, in addition to the positive activity of investor trading, as foreigners recorded net purchases of 563.9 million pounds .
In terms of developments related to Arab financial markets, Arab stock exchanges have worked to expand the market base by registering new companies in the main market and stock trading platforms for small and medium-sized companies. In another context, and as some Arab financial markets continue to seek to take advantage of the opportunities provided by digital transformation, these markets have directed investors to use the digital identity to access trading platforms in order to provide greater services to investors. In a related context, and with the aim of providing a regulatory framework that supports innovations in the field of financial technologies (Fintech), some Arab stock exchanges have approved applications for permission to experiment with some of these technologies, including the Robo-Advisory technique, in order to enhance the trading movement and attract more investors .
On the other hand, and within the framework of the securities authorities ’endeavors in the Arab countries to develop legislative and supervisory procedures and provide new financing solutions, amendments were approved on procedures for offering or issuing Sharia-compliant securities and agreeing to grant licenses to some financial services companies to practice short-term margin trading activity. Last month also witnessed the resumption of acquisition activity on Arab stock exchanges among listed Arab companies, and the continuation of Arab stock exchange efforts towards developing the debt instruments market, diversifying products and asset classes and providing new investment opportunities, in addition to continuing the development and development of small and medium-sized companies' exchanges by introducing a new index to guarantee Good representation of large companies with high liquidity rates, and enhancing financial literacy among young people. In addition to the interest of some Arab stock exchanges in stimulating companies to invest in listed securities by granting them tax incentives
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