Financial Sector Dominates Bahrain’s Trading Activity

The Bahrain All Share Index closed up 1.30 points at 1,937.73 yesterday, with trading activity dominated by the financial sector.

The Bahrain Islamic Index also rose, gaining 4.40 points to end the day at 892.34.

The Bahrain Bourse saw a total of 4.32 million shares traded, valued at BD928,880 ($2.46m), across 93 transactions.

 Financial stocks accounted for the majority of the day’s activity, representing 77.77 per cent of the total value with BD722,430 traded.

GFH Financial Group topped the trading value list, with its shares accounting for BD487,530, or 52.49pc of the total value. This was based on the trading of 3.15m shares in 14 transactions.

Al Salam Bank was the second most-traded stock by value at BD144,440, representing 15.55pc of the total, while Beyon ranked third at BD124,020, or 13.35pc.

Out of the 12 companies whose shares were traded, five saw their stock prices rise, one declined, and the remaining six were unchanged.

Middle East stock markets were mostly lower yesterday, with Saudi Arabia and the UAE extending a downward correction, while Egypt bucked the regional trend to post a strong rebound, according to analysis from Sky Links Capital Group co-founder and chief executive Daniel Takieddine.

Saudi Arabia’s stock market fell for the day, breaching a key support level that could pave the way for further declines. 

The downturn was broad-based, with losses led by the banking and energy sectors, including index heavyweights such as state oil giant Aramco and Al Rajhi Bank. The market’s performance continues to be weighed down by negative sentiment, though a sustained recovery in oil prices could offer support.

UAE markets were also under pressure, with both Dubai and Abu Dhabi continuing a correction wave.

All sectors in Dubai were in the red as most major stocks declined. The Abu Dhabi market faced similar pressure, with losses concentrated in the banking sector. Abu Dhabi Commercial Bank (ADCB) experienced a 7pc loss after announcing a 6.1 billion dirham ($1.66bn) rights issue priced below its current stock value.

In contrast to the regional downturn, the Qatari stock market was flat, as mixed performances among its leading stocks paused a recent correction. However, the market remains vulnerable to further losses.

The Egyptian stock market moved higher, rebounding from two consecutive sessions of losses. While the general market trend remains corrective, similar to most regional markets, the positive momentum was supported by news that Emaar Misr had signed a deal to develop an integrated tourism project valued at 900bn Egyptian pounds ($29bn).

Commodity markets faced broad pressure over the past week as a sharp 22pc drop in New York copper prices, triggered by tariffs, led the decline, according to Saxo Bank head of commodity strategy Ole Hansen.

The weakness extended to crude oil, which was weighed down by continued Opec+ output increases, while easing tightness in the diesel market prompted long liquidations in both London and New York, said Mr Hansen.

In agriculture, favourable weather in the United States, Europe, and the Black Sea region supported crop prospects, keeping speculative short positions elevated in wheat, corn, and soybeans. Despite this, soybeans saw a 2.5pc increase after President Donald Trump urged China to boost purchases, though Beijing has not yet booked new cargoes amid ongoing trade tensions.

“Managed money flows showed a clear tilt towards selling across the board, with the combined net long position in 27 major futures contracts falling to 540,000 lots, or approximately $107bn. The one standout exception was gold, where net long positions rose by 13pc to 161,811 contracts, supported by a softer US jobs report that renewed expectations of a potential Federal Reserve interest rate cut,” Mr Hansen added.

In foreign exchange markets, sentiment towards the US dollar showed signs of stalling. Short covering continued across major currencies, with notable moves in the Japanese yen, euro, British pound, and Australian dollar, signalling a broader recalibration of earlier expectations for sustained US dollar weakness.

Oil prices surged by over 2pc, with the primary catalyst being Opec+’s decision to significantly slow its pace of production increases for October 2025. The group announced it would raise output by only 137,000 barrels per day (bpd), a figure that was much smaller than the market had anticipated.

This unexpectedly conservative stance marks a sharp reversal from the more substantial hikes of recent months, such as the approximately 555,000 bpd increases in August and September. This restrained approach has alleviated fears of a looming supply glut and signalled to traders that the producers’ group is keen on defending prices.

Further bolstering this upward price trend are renewed geopolitical tensions. A recent Russian attack on Kyiv has increased the likelihood of additional sanctions from the US and the EU. The prospect of these measures potentially targeting Russia’s energy exports provides a secondary layer of support for oil prices, adding to supply disruption concerns.

Looking ahead, the modest October hike buys time for bulls, but the baseline stays soft: the IEA now pegs 2025 demand growth near 680 kb/d, while the EIA expects inventory builds and Brent below $60/bbl in 4Q25. In this regard, a durable upside likely requires tougher Russia sanctions or Opec+ slowing the unwind or cutting production.