The total profit of Gulf Cooperation Countries (GCC) listed companies rose 3.5 percent in fiscal year (FY) 2018 to reach $69 billion, compared to $66.3 billion in FY2017, according to a report issued by KAMCO Investment Company.
The report indicated that the Kuwait Stock Exchange recorded the highest year-on-year growth rate of 10.7 percent to reach $5.8 billion.
Saudi market Tadawul, which alone accounts for 41.2 percent of the total net profit of GCC listed companies for FY2018, recorded a growth of 1.3 percent. The net profit amounted to $28.2 billion FY2018, compared to $27.7 billion in 2017.
On the other hand, Abu Dhabi Securities Market was the only exception with an annual decline in net profit for 2018, which was minus 1.3 percent, to reach $10.5 billion.
Dubai Financial Market (DFM) was the top gainer in terms of real estate net profit in the GCC region with a value of $9.1 billion.
In terms of performance of the various sectors, the report confirmed large market sectors, including banks, basic materials, and telecommunications, were on top. These were the driving force for the increase in net profits recorded in 2018 with Gulf banks recording 11.8 percent to $36.9 billion, compared with $33 billion in FY2017.
Given the six largest sectors in terms of market capitalization: banks, basic materials, real estate, telecommunications, capital goods, and utilities, the report noted that only one sector, namely the utility sector, recorded a profit decline in FY2018.
The consumer services sector recorded the highest loss of $367.6 million in 2018 after DXB Entertainments (DXBE) announced a loss of $687.7 million in FY2018.
The report indicated that the total net profit of listed companies in the Saudi market rose by 1.3 percent to $28.21 billion in 2018, compared to $27.84 billion in fiscal year 2017. The banking sector was the largest sector with a net profit of $ 13.3 billion.
Saudi market second largest sector in terms of market capitalization, the Basic Materials sector, came second with 17.2 percent growth and $9.28 billion compared to $7.89 billion the previous year.
In Oman, the report noted that Muscat Securities Market (MSM) listed companies posted no change in FY2018, at $1.63 billion, despite a 15.7 percent fall in profits during the fourth quarter of 2018. The Banks sector, the largest sector on the stock exchange, recorded net profit growth at 11.6 percent for FY2018.
As for Bahrain, the total net profit for companies listed in Manama market increased 6 percent in FY2018 to $2.05 billion, compared to $1.94 billion in FY10. Net profit for the fourth quarter of FY2018 was also at 8.5 percent up to about $327 million.
