The Bahrain Bourse All Share Index continued its upward trajectory last month, marking its second consecutive monthly increase with a 0.4 per cent gain to close May 2026 at 1,979.1 points.
Analysis by Kuwait-based Kamco Invest shows that the positive momentum further reverses a sharp 7.8pc drop witnessed in March, driven primarily by strong rallies in heavyweight sectors despite an otherwise downbeat performance across the broader market.
In terms of monthly sectoral performance, the trend was predominantly negative as four out of seven sectors recorded declines in May. However, the market was lifted by gains in dominant indices, led by the materials sector which advanced 1.1pc to close at 4,088.8 points. The financial sector followed with a 0.6pc increase, while the consumer discretionary sector ticked up by 0.4pc. On the losing end, the real estate sector registered the steepest decline, plunging 5.2pc to close the month at 2,633.9 points.
According to data compiled by Bloomberg, share price performance saw BBK spearhead the gainers’ list with a 3.9pc surge. This was followed by National Hotels and Inovest, which grew by 3.7pc and 1.1pc, respectively. Conversely, Bahrain National Holding dipped the furthest with a 10.7pc drop, followed by Seef Properties with a 7.6pc decline and APM Terminal Bahrain, which slid 3.9pc.
The bourse also recorded a massive spike in trading activity last month, with the total volume of shares traded jumping 224pc to reach 61.7 million shares, compared to 19m shares in March. Total value traded on the exchange experienced a similarly sharp increase, rising 165.6pc to BD18.4m in May, up from BD6.9m during April 2026.
Al Salam Bank-Bahrain dominated the monthly volumes chart with 15.6m shares traded, ahead of GFH Bank with 14.2m shares and Seef Properties with 10.3m shares exchanged. In terms of value traded, GFH Bank took the top spot with BD7.9m worth of shares exchanged, followed by Kuwait Finance House-Bahrain at BD4.3m and National Bank of Bahrain at BD3.9m.
In parallel economic developments, S&P Global Ratings has affirmed Bahrain’s ‘B/B’ long- and short-term foreign and local currency sovereign credit ratings with a stable outlook, while the kingdom’s transfer and convertibility assessment remains steady at ‘B+’. The ratings agency noted that Bahrain is expected to continue benefiting from financial support from fellow GCC nations, which should offset potential negative fallout from regional developments, including any disruptions to oil production and exports.
Global equity markets rallied for a second consecutive month in May, propelled by a surge in artificial intelligence infrastructure stocks that overshadowed escalating geopolitical tensions in the Middle East and eastern Europe.
The MSCI World Index gained 5pc in May, bringing its two-month advance to more than 15pc – one of the largest bi-monthly increases on record.
Oil prices remained highly volatile but eased toward month-end on optimism surrounding regional ceasefire talks.
In contrast to the global trend, Middle Eastern markets pulled back as a crucial US-Iran diplomatic deadline loomed and the Strait of Hormuz remained closed for a third consecutive month. The MSCI GCC Index fell 1.3pc in May, reversing the previous month’s marginal gains.
Oman led the regional downturn with a 7.3pc drop triggered by profit-taking, followed by Saudi Arabia and Abu Dhabi, which slid 1pc and 0.8pc, respectively. Modest gains in Qatar and Bahrain partially offset the regional decline.
A sector-wide selloff hit Gulf bourses, led by a 5.4pc drop in healthcare, followed by materials down 4.4pc and pharmaceuticals losing 3.1pc. Defensive sectors, including food and beverages and utilities, bucked the trend to post gains.
avinash@gdnmedia.bh
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