Markets end 2010 in the Green

06/01/2011

GCC markets were mostly up in December; S&P GCC gained 4.5% for the month with the annual gain coming in at almost 13%. The UAE continued to lag; ending 2010 in the red, with Abu Dhabi and Dubai losing 1.5% and 10%, respectively, for the year. Qatar and Kuwait’s Weighted Index were the clear winners; gaining roughly 25% each. The S&P GCC Index slightly underperformed MSCI EM, which was up 16% in 2010, but significantly outperformed MSCI BRIC, up just 5% for the year.

Total Value Traded in the GCC totaled USD 296 bn in 2010, a 42% annual decline and amounting to just 58% of the 2009 total and a far cry from the peak value of USD 1.6 trillion clocked in 2006. Pan GCC risk was down 40% in December and saw a 72% decline in 2010 with half of the GCC seeing declines in volatility in the final month of the year; the largest of which was 26% in MVX Kuwait. Qatar, Oman and Bahrain saw slight increases in risk, 7% for MVX Qatar. The largest annual decline among GCC markets was 84% in MVX Abu Dhabi, while Saudi and Kuwait saw a 60% reduction in risk each in 2010.

GCC Markets Review

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 Global Markets review

World markets ended the year on a positive note; with last minute strong economic and market indicators pushing equities higher. Crude oil gained 7.6% in December, ending the year at $92.81/bbl, a 20% annual gain and its highest level post crisis. MSCI World gained over 7% for the month, bringing the annual return to 13% for 2010.

Monthly returns were positive closing out the year. Europe and EAFE saw gains of 8% each while MSCI World, FTSE, Asia ex. Japan, and the S&P 500 all gained 7% in December. Shanghai continues to lag, flat for December and down 14% for the year.   

About Markaz

Kuwait Financial Centre 'Markaz', with total assets under management of over KD1.03 billion as of September 30, 2010, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997.