The Bahrain Bourse (BHB) indices registered gains yesterday as trading activity saw a strong focus on the financials sector.
The Bahrain All Share Index closed up, rising by 1.86 points, or 0.10 per cent, to finish the session at 1,951.67. The Bahrain Islamic Index also performed positively, increasing by 2.84 points, or 0.31pc, to settle at 919.99.
The market saw investors trade a total of 2,269,284 shares across 80 transactions. The total value of shares traded for the day reached BD660,741.
Market activity was heavily concentrated in the financials sector, which accounted for the bulk of the day’s turnover. Specifically, the sector represented 64.10pc of the total trading value, reaching a total value of BD423,529. This activity was executed over 42 deals, involving a total volume of 1,338,068 shares.
Three major banks and one investment group dominated the market in terms of trading value. The National Bank of Bahrain (NBB) took the top position, with a total traded value of BD152,584.40, representing 23.09pc of the day’s turnover, which involved the trade of 305,350 shares across 8 transactions. It was closely followed by the Bank of Bahrain and Kuwait (BBK) in second place, which saw shares valued at BD120,190, contributing 18.19pc to the total trading value over three deals (238,000 shares). Completing the top three was the GFH Financial Group (GFH), which generated a trading value of BD96,135.36, accounting for 14.55pc of the overall traded value as 531,277 shares changed hands.
Speculators increased their gross dollar short position by 10pc to $8.7 billion in the week ending September 23, according to the latest Commitment of Traders (COT) update, as long exposures rose following the Federal Open Market Committee (FOMC) meeting.
The foreign exchange demand pivoted towards risk-off and higher beta currencies. Notable long positioning growth was recorded in the Swiss franc (CHF), British pound (GBP), and particularly the Japanese yen (JPY), while the euro (EUR), Canadian dollar (CAD), and Antipodean currencies saw net selling. The Mexican peso (MXN) was the standout currency, with net long positions surging to an index-high of 83,400 contracts, significantly outpacing its five-year average of about 27,000 and signalling a sharp shift in sentiment.
In commodities, the Bloomberg Commodity Index fell 1.5pc during the week, though prices finished strong near the highest monthly close since May 2022.
Soft commodities led the sector declines, with Arabica coffee plunging 14.5pc. Broad grains turned completely net short across all six CME-traded contracts for the first time in 20 months. In energy, Brent and West Texas Intermediate (WTI) futures unwound modestly, with long liquidation driving a combined -19,300 contract shift. Conversely, copper moved to a 15-month high net long of 44,500 contracts, aided by the disruption at Freeport’s Grasberg mine.
Oil prices fell as crude started to flow through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Türkiye for the first time in 2-1/2 years.
Reuters reported Opec+ will likely approve another oil production increase of at least 137,000 barrels per day at its meeting next Sunday.
Brent dropped 2.9pc to $68.11 a barrel, while US crude fell 3.2pc to $63.61 per barrel.
Bitcoin continued to slide last week as stronger-than-expected US economic data dampened the prospects of further Federal Reserve interest rate cuts this year.
US GDP data in particular saw a significant upward revision, expanding at an annual rate of 3.8pc versus 3.3pc, bolstering the case for the “no rush to ease” camp.
“Altcoins slid further, seeing a 10pc decline in their total capitalisation. Smaller, more speculative coins recorded even steeper losses, in some cases as much as 30pc, as risk aversion took hold,” said eToro crypto analyst Simon Peters.
Looking ahead, the focus this week will be on fresh labour market data from the US, including JOLTS job openings, ADP employment change, and the much-anticipated non-farm payrolls and unemployment rate due Friday. With bitcoin having re-tested its recent support of $108,000, stabilisation in the labour market could prompt further downside. Conversely, any softening in jobs data may swing sentiment back toward the bullish case for rate cuts, supporting cryptoasset prices.
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