KUWAIT CITY, Oct 19: Twenty-five brokers published 288 research notes on 133 companies during 3Q10, compared to the 270 research notes on 110 companies published in 2Q10, according to a recent report by Kuwait Financial Centre “Markaz” on GCC Equity Research Statistics... During this quarter, 19 percent of all GCC companies received research coverage, representing 71 percent of the total market cap. Saudi Arabia, which continued to attract the most attention, accounted for 45 percent of research notes and 40 percent of the companies covered. A wave of optimism continued in GCC markets, with 55 percent “Buy” calls, 36 percent “Hold” calls, and 10 percent “Sell” calls.

The market cap of researched companies in Saudi Arabia accounted for 90 percent of the domestic market capitalization. This was followed by UAE (63 percent), Kuwait (59 percent), Oman (58 percent), Qatar (47 percent) and Bahrain (41 percent). The proportion of “Buy” ratings in Saudi Arabia increased to 50 percent in 3Q10 from 45 percent in 2Q10.

Qatar remained the most preferred equity market, with all 19 research notes during 3Q10 receiving “Buy” ratings. On the flip side, Kuwait recorded the maximum sell ratings. The market accounted for 39 percent of the 28 “Sell” ratings during the quarter. Furthermore, 33 percent of the research notes covered in Kuwait were assigned “Sell” ratings, higher than other GCC markets. In Bahrain, the contribution of “Buy” ratings fell to 43 percent in 3Q10 from 50 percent in 2Q10.
Etihad Etisalat Co remained the most tracked stock with eight research notes during the quarter. National Bank of Abu Dhabi (NBAD) also witnessed the highest research notes (8), followed by Emirates Integrated Telecommunications Co (7), and Tasnee and Abu Dhabi Commercial Bank (6 notes each). All research notes on NBAD were assigned “Buy” ratings, while 7 of the 8 research notes on Etihad Etisalat Co received “Buy” ratings. This was followed by Qatar Electricity and Water Co (6), Tasnee (5) and SABIC (4).

The banking sector continued to dominate the research coverage space, accounting for 26 percent of total research notes in 3Q10. The sector also received maximum “Buy” calls. Of the 157 “Buy” calls, 25 percent belonged to the banking sector. Incidentally, the sector also accounted for 32 percent of total “Sell” ratings in 3Q10, the highest among other sectors. Asset Management and Custody Banks as well as Specialized Finance companies (accounting for 6 of the 9 firms covered) were assigned “Sell” ratings.