Shares in Kuwait led a day of positive gains throughout the Arabian Gulf on Sunday, with only Abu Dhabi finishing in the red.
The Kuwait Stock Exchange Index extended its winning run to an unprecedented 13th straight day, closing up 3.2 per cent at 6,644.77, as confidence fuelled by the prospect of stock market reforms and higher oil revenues showed no sign of abating.
The index is the second best performer in the world so far this year, behind Argentina’s Merval Index, rising by nearly 16 per cent over the past three weeks.
Shares in Dubai began the week brightly, closing up 0.7 per cent at 3,716.98.
Emaar Properties led big-name gainers, finishing up 0.8 per cent at Dh7.61.
DIB closed up 1 per cent at Dh6.05, ahead of the anticipated release of the bank’s fourth-quarter results this week. Shares in Arabtec Holding, which is due to hold its board meeting today, rose 0.7 per cent to Dh1.46.
The Abu Dhabi Securities Exchange General Index ended a busier than average trading day down 0.1 per cent at 4,698.78, owing to drops by FGB and Etisalat.
Trading was dominated by Eshraq Properties and RAK Properties, which finished up 13 per cent and 7.6 per cent. The two real estate companies together accounted for nearly two-thirds of the 585 million shares traded on the bourse.
Shares in Saudi Arabia rose for a second straight day, as traders took time to digest the implication of last week’s fourth-quarter earnings from big names. The Tadawul ended the day up 0.34 per cent to 6,898.93, thanks to gains by Al Rajhi Bank and Saudi Industrial Investment Group.
jeverington@thenational.ae
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From Europe to the Middle East, economic success brings wealth - and lifestyle diseases
A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.
One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait, Qatar and Oman – and second on the list in Bahrain.
In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.
The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.
And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.
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How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
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