GCC markets were down in May, losing 6.1 percent after a decrease of 3.2 percent in April, Kuwait Financial Centre (Markaz) said Wednesday.
Global factors weighed down on GCC with all the markets ending in red. Dubai was the largest loser shedding 9.8 percent for the month, followed by Saudi Arabia which lost 7.7 percent. Saudi has been the best performing market YTD, with a gain of 8.7 percent. Kuwait lost 2.2 percent May cutting its yearly gain to 0.71 percent.
Volumes in the GCC decreased by 25 percent MoM while value traded decreased 38 percent over the month to $49 billion. This was on the back of 22 percent MoM drop in volumes and 16 percent decrease in value traded in April. Saudi Arabia, which accounted for 88 percent of GCC’s total value traded, witnessed a 40 percent MoM drop in value traded.
Global markets were negative in May due to worsening conditions in the eurozone. The World broad index was down 8.7 percent as investors sold-off equities and flocked to safer assets. Europe, which is the epicenter of crisis, witnessed deep cuts with MSCI Europe losing 12.5 percent for the month. The flight to safety resulted in 10-year US Treasury yield hitting an all-time low of 1.642 percent.
New mortgage rules to drive UAE property boom
The new property mortgage cap by the UAE Central Bank, which came into effect this week, will deliver more stability to the property market but further measures to curb the negative impacts of specu