GCC equity markets see first decline in three months

GCC equity markets see first decline in three months

Muscat: GCC equity markets witnessed its first decline in three months taking cues from the worst monthly performance in global equity markets this year, according to a new report. "Despite a second half recovery, the MSCI World index was down 3. 6% during August-2023 after a hawkish Fed led to fears of higher for longer rates with some economists even pricing in another rate hike this year and the first cut deep into next year," Kamco Invest said in its Monthly GCC Market Report. Weak data coming from China also affected sentiments across the board got exacerbated by the probability of a continued rate hike by the ECB in September-2023. China's economic activity continued to slide with manufacturing activity contracting for the fifth consecutive month as government reforms and new targeted policies are yet to have a meaningful impact on markets and sentiments, it added. The MSCI GCC Index witnessed a slightly steeper decline of 3. 8 percent during the month led by a fall in four out of seven exchanges, including in Saudi Arabia. The decline came despite oil seeing gains for the third consecutive month on supply cuts and steady demand data. Qatar was the worst performing market