Manama: Mahmood Rafique, Editor: GCC index has recorded the highest 1H gains since its inception at 25.0%, according to GCC Markets Monthly Report released by Kamco Invest.
Equity markets in the GCC were up for the eighth consecutive month during June-2021, in a rally that started since November-2020. Gains were broad-based with only the Qatari index reporting a marginal decline of 0.2% during the month, whereas the rest of the GCC markets reported low to mid-single digit gains. As a result, the MSCI GCC total return index recorded the best 1H performance since the index started tracking regional markets in 2005 with a return of 25.0% during 1H-2021. Abu Dhabi continued to lead with the highest 1H-2021 returns in the region as well as globally at 35.5% followed by Saudi Arabia with a gain of 26.4%. All the markets in the GCC were in the green this year with a majority of the indices reporting double digit gains. Sector performance also showed a broad-based rally during the month with only the Food & Drug Retail and Transportation sectors reporting declines of 3.2% and 0.1%, respectively, while the rest of the 15 sectors showed gains.
The Pharma and Biotech index topped performance during June-2021 and in 1H-2021 with returns of 24.3% and 50.4%, respectively. All the sectors were in the green in terms of 1H-2021 returns with gains for 13 sectors in double digits. Large-cap sectors like Banks, Material and Telecom reported gains of more than 20%, whereas for the Energy sector, gains were at 6.7%. Performance for global equity markets were mixed during June-2021 but the aggregate MSCI World Index closed in the green with a gain of 1.4%. China’s benchmark declined by 0.7% during the month that affected EM performance, whereas Europe and US markets reported low single digit monthly returns. In terms of 1H-2021 returns, all the key markets were in the green, with US market reporting a gain of 14.4% whereas European markets were up 13.5%. Gains were mainly led by resumption of economic activity as vaccinations picked up in most countries.
