London 1x1 Conference brings GCC equities in focus as geopolitical risk lingers Pdf-3

Regional markets – London 1x1 conference puts GCC equities in front of global investors

This week, GCC markets will track whether the latest Iran-related escalation remains contained to Bahrain and Kuwait, or whether it draws in other GCC countries. The main event will be the HSBC GCC Exchanges Conference in London from 8–11 June, which will bring global institutional investors together with GCC listed companies at a time when foreign flows remain selective due to the uncertain geopolitical situation. On the corporate agenda, Al-Babtain Power, Gulf Cables, Qassim Cement, SPIMACO and Yanbu Cement are among the companies going ex-dividend this week.

Global markets – CPI, ECB and SpaceX to test risk appetite

Global markets face a busy week across inflation, rates, IPO liquidity and technology earnings. In the US, May CPI, PPI and Michigan consumer sentiment data will drive Treasury yields and Fed expectations ahead of the 16–17 June FOMC meeting. The SpaceX IPO is now a real liquidity event, with the company targeting a USD75bn raise at a valuation of about USD1.75tn and Nasdaq trading expected on 12 June. That should keep growth-stock positioning under pressure, especially across AI and semiconductor names. On the earnings calendar, Adobe, Oracle and SailPoint will report results. In Europe, the ECB rate decision will guide further rate expectations, while UK GDP and China’s trade and inflation data will give investors a clearer read on the direction of global growth.

Note to Management – Foreign investors stay selective

May foreign flows show that investors are applying a higher risk premium to GCC equities, but they are not abandoning the region. The GCC recorded net foreign outflows of USD837mn in May, led by selling in the UAE, Kuwait and Qatar. Saudi Arabia was the exception, with modest net inflows of USD53mn. Despite May’s outflow, GCC equities still recorded USD1.145bn of net foreign inflows year to date. The MSCI GCC Index fell 1.1 percent in May to 747 points and is now down 5.7 percent year to date from 792 points. That is a negative market reaction, but it remains relatively contained given the severity and duration of the current conflict. Read the full report here: Link

Last week, GCC markets came under pressure from renewed US-Iran tensions. Dubai (+0.2%) and Bahrain (+0.2%) were the only GCC markets to finish in positive territory. Saudi Arabia (-0.3%) and Kuwait (-0.7%) posted modest declines, while Abu Dhabi (-0.9%) and Oman (-1.5%) saw larger pullbacks. Qatar (-2.4%) was the weakest performer in the region, partly reflecting softness in QNB.

In the US, markets ended lower, with the NASDAQ (-4.7%) seeing the sharpest decline, followed by the S&P 500 (-2.6%) and the Dow Jones (-0.3%). The NASDAQ’s decline was mainly driven by a sell-off in AI and semiconductor stocks, as investors locked in gains after a strong rally. In Europe, the DAX (-1.4%) posted the largest decline, while the STOXX Europe 600 (-0.5%) and FTSE 100 (-0.4%) also closed lower. The CAC 40 (+0.4%) was the only major European index to end the week in positive territory.