RIYADH: Stock exchanges in the Gulf Cooperation Council states have recorded their second biggest monthly decline in almost six years, as growth was stunted by spillover from global peers.
“The decline in the GCC came as investors booked profits on elevated valuations as markets in the GCC were some of the best performing this year,” Kamco Invest said in a recent report.
MSCI GCC Index, which captures the performance of indexes across the region, was down 7.5 percent in May, the report revealed.
That said, the aggregate index is up 12 percent in terms of year-to-date gains, having recorded four straight months in the green before dropping in May.
Dubai posted the biggest drop of 10 percent, followed by Bahrain and Kuwait with declines of over 6 percent. Saudi Arabia’s Tadawul fell 5.9 percent on the month.
Declines during the month were mainly caused by the region’s heavyweight sectors, including telecom, materials, and pharmaceuticals.
