GCC index registers biggest gains since global financial crisis

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A broad-based rally in GCC markets, coupled with high oil prices, pushed the global benchmark MSCI GCC Index up 17.7% in the first quarter of 2022, the largest gains since the second quarter of 2009 .

The gains were supported by four straight months of gains in the index, according to Kamco Invest, a leading Kuwait-based investment firm.

All markets were positive in the quarter, with Abu Dhabi recording the biggest gain of 17.2%, followed by Qatar and Saudi Arabia with gains of 16.4% and 16.0%, respectively .

Positive performance

In terms of monthly performance, the MSCI GCC Index rose 5.2% during the month, supported by positive performance across all GCC markets in March 2022.

From a sector perspective, the GCC Capital Goods, Materials and Banks sectors led in the first quarter of 2022 with gains of almost 20%. Energy and health follow with respective growth of 18.2% and 15.1%.

Durable consumer goods and clothing and pharmaceuticals are the only sectors that fell this quarter by 10.0% and 5.1%, respectively. Monthly performance also saw materials leading with a 9.7% gain, followed by healthcare and capitalization indices.

Volatility of Crude Oil

Additionally, despite recent weakness, disruptions on the supply side pushed crude oil prices to high growth of almost 40% over 7 quarters in the first quarter of 2022.

Oil price volatility saw prices hit a 14-year intraday high of $139.1/bbl in the first week of March 2022, but closed the month at $107.9/bbl.

Global stock markets also had a positive month, with the MSCI World Index gaining 2.5%, buoyed by peace talks between Russia and Ukraine.

American market

However, a surge in Covid-19 cases in China that led to lockdowns in several major cities sent China’s gauge down 6.1% in the month while also dropping the MSCI Emerging Market Index by 2, 5%.

The US market rose 3.6% while the European benchmark posted marginal growth of 0.6% during the month.

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

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