Global markets hit by US-China trade war, oil prices volatility in 2018

03/01/2019 Argaam Special

 

Several economic events weighed on the performance of global markets last year, including the US-China trade war, as both states continue to impose tariffs on goods traded between them, a study conducted by Argaam showed.

 

Also, oil prices volatility was amongst the factors that reflected on the markets’ performance last year. Oil prices dropped by 20 percent at $53.9/bbl, over supply abundance woes and lower global demand.

 

In addition, some currencies lost strength before the US dollar, including the Turkish lira, and Argentine’s Peso.

 

Other major economic events in 2018 included the Federal Reserve’s decision to increase rates four times during the year.

 

In terms of performance of global indices, China’s SZSE Component Index was the worst performer, plunging 34 percent.

 

Meanwhile, the Arab worst performing markets were led by Dubai Financial Market Index (DFM) – the world’s fourth decliner - which plummeted 25 percent, on the steep decline of real estate prices.

 

Top Global Markets Losers in 2018

Country

Index

Closing (Points)

Variation 2018

China

SZSE Component

7,240

(34%)

Taiwan

TPEx 50

138

(27%)

Ivory Cost

BRVM 10

161

(27%)

UAE

DFM

2,530

(25%)

China

Shanghai

2,494

(25%)

Kenya

Kenya NSE 20

2,801

(25%)

Greece

Athens General Composite

613

(24%)

Ireland

ISEQ Overall

5,480

(22%)

South Korea

KOSPI 50

1,723

(21%)

Turkey

ISA 100

91,270

(21%)

Nigeria

NSE 30

1,402

(20%)

Austria

ATX

2,746

(20%)

Belgium

Belgium 20

3,244

(18%)

Germany

DAX

10,559

(18%)

Bangladesh

DSE 30

1,881

(18%)

 

The Ukraine PFTS Index was the top gainer, soaring 78 percent following the government’s economic reforms.

 

Tadawul All Share Index (TASI) was amongst the best performers, rising by 8 percent upon the inclusion in the MSCI Emerging Market Index.

 

The top gainers’ list included six Arab countries, led by Qatar Stock Exchange (QE) which added 21 percent and Abu Dhabi Securities Market General Index (ADSMI) – the ninth position -  which increased by 12 percent on the improved performance of energy and banking stocks.

 

Top Global Markets Gainers in 2018

Country

Index

Closing (Points)

Variation 2018

Ukraine

PFTS

559

+78%

Jamaica

JSE Market

379,791

+32%

Venezuela

Bursatil

1,605

+27%

Qatar

Index Qatar

10,299

+21%

Tunis

Tunindex

7,272

+16%

Tunis

Tunindex20

3,249

+15%

Brazil

BVSP

87,887

+15%

Russia

IMOEX

2,369

+12%

UAE

ADI

4,915

+12%

Bosnia and Herzegovina

Sarajevo 10

627

+11%

Kuwait

Premier Market PR

5,265

+10%

Saudi Arabia

TASI

7,827

+8%

Montenegro

MNSE 10

841

+8%

Kazakhstan

KASE

2,305

+7%

India

SENSEX

36,068

+6%

 

Among Arab and GCC markets, the Egyptian Exchange (EGX) and Muscat Securities Market (MSM) ended the year down by 15 percent each, as EGX was subdued by the government latest austerity measures.

 

Conversely, among the best performing indices was Qatar Exchange (QE) which gained 21 percent and Tunis Stock Exchange indices; Tunis TUNINDEX (16 percent) and Tunis Index 20 (15 percent). Also, Kuwait Stock Exchange Index was ranked the fifth among the Arab countries (10 percent) and then came TASI (8 percent) were the best performers, while the Saudi Stock Exchange (Tadawul) took the eighth position, edging up 0.2 percent in 2017.

 

Arabic Markets Performance in 2018

Arab ranking

Country

Global ranking

Index

Closing (Points)

Variation 2018

1

UAE

4

DFM

2,530

(25%)

2

Lebanon

23

BLOM Stock

977

(15%)

3

Oman

24

Muscat Exchange

4,341

(15%)

4

Egypt

27

EGX 30

13,036

(13%)

5

Iraq

35

ISX Main 60

510

(12%)

6

Jordon

45

Amman stock Exchange

1,909

(10%)

7

Morocco

51

MASI

11,364

(8%)

8

Palestine

54

Al Quds Index

529

(8%)

7

Bahrain

28

Bahrain General Index

1,332

+0.1%

6

Saudi Arabia

12

TASI

7,827

+8%

5

Kuwait

11

Premier Market PR

5,265

+10%

4

UAE

9

ADI

4,915

+12%

3

Tunis

6

Tunindex20

3,249

+15%

2

Tunis

5

Tunindex

7,272

+16%

1

Qatar

4

Index Qatar

10,299

+21%

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