Middle East benchmarks traded sideways

There were renewed concerns for investors throughout August due to slowdown in the global economic recovery as most Middle East benchmarks traded sideways, according to the latest Mena markets report from Rasmala Investment Bank.

Uncertainty and global volatility are keeping investors on the sidelines.

The overlap of Ramadan and summer holidays combined with a lack of catalysts led to the lowest volumes in several years for some of the local markets.
 
Mena markets outperformed international equity markets despite both indices ending lower on the month. The MSCI Arabian Markets Index lost 0.5 per cent compared to a drop of 3.9 per cent for international markets as measured by the MSCI World Index. On a year-to-date (YTD) basis, the region continues to fare better than international markets up 1.5 per cent compared to a YTD decline of 7.5 per cent for international markets.

UAE indices reversed last month's positive trends as both the DFM and ADX lost 1.9 per cent on the month, on YTD basis, the DFM and ADX are still 17.7 per cent and 8.9 per cent in the red, respectively.
 
The Tadawul Index in Saudi Arabia lost 2.8 per cent in August after gaining 3.1 per cent in July. On a YTD basis, the index is now down 0.3 per cent.
The KSE Index of Kuwait finished the month up 0.5 per cent. The index is still 4.5 per cent in the red since the beginning of the year.

Qatar’s DSM 20 Index continued to be the top performer among the GCC indices, rising another 2.8 per cent to reach a three-month high and bringing the year-to-date gain to 3.8 per cent.

Oman’s MSM Index reversed last month's upward trend losing 0.6 per cent in August and is 1.8% in the red on a YTD basis.

Egypt’s EGX gained for a second consecutive month, up 1.5 per cent in August. On a YTD basis, the index is 3.2 per cent in the green.

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