Markaz has reported that total earnings during the first half-year of 2014 (H1, 2014) amounted to
Aggregate net profits from financial services in the first half-year of 2014 came in at
GCC corporate earnings in H1, 2014 increased by 11 per cent when compared with the same period last year (H1 2014 vs H1 2013, YoY basis) while it has gained by 12 per cent when compared with the preceding half year (H1 2014 vs H2 2013, HoH basis). On a YoY basis,
Financial services gained the most during 1H14, a total earnings growth of 35 per cent on a YoY basis which was followed by the conglomerates, telecom and real estate which grew by 29 per cent, 25 per cent and eight per cent respectively. The financial services have been helped by the improving economic prospects and tremendous increase in value of asset classes such as equity and real estate.
Earnings in construction related and commodities segment contracted by one per cent and four per cent respectively on a YoY basis during the 1st half of 2014. Commodities segment in the GCC are highly correlated with global growth and as a result sluggish demand in global markets affected the earnings. The industry bellwether for the region SABIC has been affected by it and as a result has shown a very flat earnings growth of two per cent (HoH).
Based on the current trends, we expect an annual earnings growth of 10 per cent in 2014. We believe that local developments in the GCC region play a vital role in the regional stock markets. Implementation of structural reforms in
Overall, we expect
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