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The Bahrain Bourse All Share Index registered a marginal 0.5 per cent decline in March 2025, closing at 1,951.37 points, reflecting a broader downward trend observed across GCC markets.
According to a report by Kuwait-based Kamco Invest, this dip pushed the index’s year-to-date return into negative territory, settling at negative 1.7pc.
Sectoral performance revealed a skewed landscape, with four out of seven indices experiencing losses. The heavyweight Materials Index led the decline, shedding 0.9pc, followed by the Financial and Industrials indices, each retreating by 0.6pc. These sectoral contractions were pivotal in driving the overall index into the red.
Conversely, the Real Estate Index emerged as the month’s star performer, surging 5.7pc, propelled by gains across all constituent companies. The Consumer Discretionary Index also witnessed robust growth, climbing 4pc. Despite these divergent sectoral movements, the market exhibited relative stability, characterised by moderate fluctuations.
Bloomberg data highlighted Khaleeji Bank as the top gainer, with an 18.5pc share price appreciation. Bank ABC and Seef Properties followed with gains of 17.2pc and 13pc, respectively.
On the flip side, United Gulf Holding witnessed a sharp 15.8pc decline, leading the decliners.
Nass Corp and Cineco also experienced significant losses, dropping 9.8pc and 2.9pc, respectively.
Trading activity on the exchange experienced a steep contraction in March 2025. Total traded volume plummeted by 51.9pc, falling to 180.2 million shares from 374.7m shares in February 2025. Similarly, the total value traded witnessed a dramatic 92.1pc decline, reaching BD30.3m from BD382.5m in the preceding month.
Alba topped the monthly volume charts, trading 294.5m shares, followed by Al Salam Bank (62m shares) and GFH Financial Group (2.6m shares). In terms of value traded, Alba also led with
BD364.9m, trailed by Al Salam Bank (BD12.5m ) and Kuwait Finance House (BD2.7m).
Bahrain’s economy is projected to expand by 2.8pc in GDP in 2025, according to Oxford Economics, aligning with a broader GCC forecast of 4pc growth, up from 1.8pc in 2024.
The kingdom’s diversification initiatives are expected to drive this growth, with the non-oil sector leading the charge. The non-oil sector, which accounted for 86pc of Bahrain’s overall GDP in 2024, is forecast to grow by 3.1pc in 2025. Key sectors driving this expansion include accommodation and food services, financial activities, and insurance.
Meanwhile, Bahrain’s oil GDP is expected to recover, posting 0.9pc growth in 2025, a reversal from the 2.4pc contraction in 2024. This turnaround is largely attributed to the $6 billion Bapco Modernisation Programme, which aims to increase the refinery’s capacity to 400,000 barrels per day by the end of 2025.
Global equity markets faced mounting pressure for a second consecutive month in March 2025, rattled by US trade policy uncertainties and forecasts of a US economic slowdown. Investor sentiment soured as the US government’s tariff announcements and retaliatory measures from trading partners cast a shadow over near-term global growth prospects. This flight to safety drove investors towards gold, which reached a record high, and government bonds.
The downturn was concentrated in developed markets, with the US market sliding 5.8pc. The tech-heavy “Magnificent Seven” stocks experienced their steepest decline since December 2022, falling 10.2pc. In contrast, emerging markets eked out a marginal 0.4pc gain, buoyed by gains in India and Brazil.
The MSCI GCC index also held relatively steady, declining just 0.4pc, despite widespread losses across the region’s seven exchanges.
Within the GCC, Dubai led the declines, falling 4.2pc, its first monthly drop in ten months. Abu Dhabi and Qatar each slipped 2pc, while other regional markets saw marginal losses.
The GCC’s relatively muted decline was attributed to gains in large-cap sectors, notably banking, telecom, and materials, which largely offset losses in other sectors.
Banking stocks benefited from expectations of “higher for longer” interest rates, bolstering net interest income. Year-to-date, Kuwait stood out as the sole GCC market in positive territory, boasting a 9.7pc gain, among the highest globally.
avinash@gdnmedia.bh
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