Foreign investors pulled $27.9 million out of the Bahrain Bourse in the second quarter of 2025, continuing a trend of net selling that has spanned the first half of the year, according to recent market analysis by Kamco Invest.
Bahrain’s stock market was the second-worst performer in the GCC for foreign investment during Q2, behind only Oman, which saw net sales of $29.6m. For the first half of 2025, foreign investors were net sellers in Bahrain, Oman, and Qatar, with net outflows from Bahrain totalling an undisclosed amount, which partially offset a broader regional buying trend.
The net selling in Bahrain occurred even as foreign investors were net buyers across the wider GCC stock markets, with net purchases reaching $4.2 billion in the second quarter, up from $2.8bn in the first quarter. The positive momentum was largely driven by buying in Saudi Arabia, the UAE, and Kuwait.
Overall, foreign investors were net sellers of GCC stocks in the first half of the year in three countries: Qatar, Oman, and Bahrain. Foreign investors were the biggest buyers of UAE stocks during the period, with net buying reaching $4.5 billion, followed by Saudi Arabia and Kuwait.
The analysis also highlighted a significant decline in trading activity on the Bahrain Bourse. The total volume of shares traded plummeted by 61.5 per cent in the second quarter of 2025 compared to the first quarter. Trading value also declined during the same period.
The report did not include data on trading activity by other GCC investors in the Bahrain Bourse, citing data unavailability. This was a recurring theme, with several data points excluded for Bahrain due to a lack of available information.
The mixed performance in the GCC equity markets comes amidst global economic uncertainty, with investors cautious about the US Federal Reserve’s stance on interest rates and new US trade tariffs. The analysis cited regional market trends, initial public offerings (IPOs), geopolitical issues, and crude oil prices as key factors influencing foreign investment flows.
avinash@gdnmedia.bh
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