The Month That Was - MENA Markets end 2016 on a positive note

Pages
Pages 13
table
Tables 13
Chart
Charts 3
Price $0

Oil price climbed 12.6% to USD 57 per barrel, as OPEC and non-OPEC members agreed on production cuts to stabilize the oil markets. The deal to cut .....

Summary

  • Oil price climbed 12.6% to USD 57 per barrel, as OPEC and non-OPEC members agreed on production cuts to stabilize the oil markets. The deal to cut production will lead to oil producers shedding atleast 1.8mn barrels per day for the next six months.
  • S&P GCC closed the last month of 2016, 4.2% higher than the previous month, as all GCC indices had a positive month. 
  • The Egyptian index was the best performer in 2016, as the country introduced a slew of reforms to revive its sagging tourism industry. Egypt’s largest public lender, the National Bank of Egypt (NBE) is planning to extend the grace period for loans granted to its customers in the tourism industry.
  • Kuwait weighted and price indices had a positive month, climbing 3.5%. For the year 2016, the Kuwaiti price index climbed 2.4%, while the weighted index remained one of the two indices to end the year in red (-0.4%), along with Jordan (-3.8%).
  • Recovering from a massive sell-off at the beginning of 2016, which led to a loss of 10.5%, S&P 500 notched up another positive year, closing at 2,239 points, 9.5% higher than 2015 close. Fed's hesitancy to increase interest rates, coupled with improved corporate profits and Trump's victory at the elections are the underlying reasons for the rally.
  • Saudi Arabia’s 2017 budget and spending boost announced suggests its finances are on the road to recovery. Saudi Arabia’s deficit is projected to decline by a third next year, and would continue to be financed by sovereign issuances and reserve drawdowns.
  • The deal between the OPEC and other heavyweight oil producers to cut around 2% from global production in 2017 is expected to curb oversupply, and push prices close to USD 60 a barrel. However, speculation remains regarding OPEC members following-through, and producers from US increasing production, buoyed by higher prices.

Reviews



play_video_icon
Close

The Month That Was - MENA Markets end 2016 on a positive note

Recently Browsed