A red October.

Byline: [e-mail] (Staff Writer)

The GCC markets continue to show poor performance compared to emerging market peers and are only slightly outperforming developed markets on a YTD basis according to the latest monthly market review from Markaz.

It showed that the MSCI GCC lost 2.75 per cent in October after gaining six per cent in September bringing the YTD gain to 24 per cent. All GCC markets were down except for Dubai's DFM which saw a modest return of 0.30 per cent. The worst performer was Kuwait's Weighted Index, which shed seven per cent in October, pulling the YTD gain down to nearly four per cent.

GCC Volume was up 21 per cent for the month at 26.8 billion while value was gained 54 per cent to $46.5 billion. Saudi Arabian inflation figures picked up a bit in September where inflation (CPI) growth was at 4.4 per cent.

"The prevailing hope was that the S&P 500 would score its ninth consecutive month of gains in October; however, sharp selling in the final days of the month caused the index to post a monthly loss of two per cent," Markaz reported. "Consumer confidence in the US remains at an exceedingly low 47.7 (by way of comparison, the same indicator was at 84.9 in the post-9/11 recession), indicating that despite various economist's claims that the recession is over, the 'average Joe' isn't buying it."

The Case Shiller Housing Index posted its third consecutive monthly gain while the US Homebuilders Housing Market Index lost five per cent in October. The US CPI numbers eased in September, showing a decline of 1.25 per cent versus the 1.52 per cent decline in August. On the emerging market front, Chinese exports were down 15 per cent YoY in September 2009, a deceleration of the 23 per cent declines seen in July and August.

The Markaz report showed that on a peak to trough basis, the Saudi index saw the most decimation, losing 80 per cent of its value; the current run up of the index (trough to current value) is at 52 per cent. The least amount of recovery thus far has been in Kuwait, which is up 15 per cent from its trough value, after losing 59 per cent.

2009 CPI Financial. All rights reserved.

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