Sukuk price sees 29% increase

The average price of GCC corporate Islamic bonds, or sukuk, has jumped by a dramatic 29 per cent since the market reached its trough in February, a reflection that confidence in the Gulf is recovering fast, international law firm Trowers & Hamlins said yesterday.

In comparison, the average price of US corporate bonds remained virtually unchanged (falling two per cent) over the same period.

"Since the market's darkest day on February 11, the average yield on corporate GCC sukuk has fallen from 17.2 to 10.1 per cent and the average credit spread over the London interbank offer rate has narrowed from 1,414 to 751 basis points," the firm said.