Global equity markets closed the year 2024 with a healthy gain for the second consecutive year led by a broad-based positive performance across key global equity markets, according to Kamco Invest, a regional financial powerhouse based in Kuwait.

 

However, the GCC equity markets once again witnessed one of the smallest equity market gains globally last year. The aggregate MSCI GCC index reported a gain of 0.7% during the year following mixed performance at the country level, it stated. 

 

At the exchange level, Dubai witnessed the biggest gains during the year with a double-digit surge of 27.1% followed by healthy gains of 8% for Boursa Kuwait. 

 

Saudi Arabia also managed to close in the green with a gain of 0.6%, following a volatile year, while Oman and Bahrain registered gains of 1.4% and 0.7%, respectively. 

 

These gains were partially offset by declines in Qatar and Abu Dhabi by 2.4% and 1.7%, respectively., stated Kamco Invest in its report.

 

GCC markets continued to underperform global indices mainly led by region-specific factors coupled with global developments like interest rates and inflation, said the report. 

 

This included the war on Gaza, Lebanon, the change of guard in Syria and the Red Sea attacks that affected global flow of goods and key commodities. 

 

Nevertheless, key indicators in the region remained steady with growth in non-oil sector across the region with a strong project pipeline of $3.5 trillion, stated Kamco Invest in its report.

 

In terms of trading activity, foreign investors were net buyers of GCC stocks during the year as against net sellers in most other global emerging markets. 

 

The performance during the year was marked by several key events globally and especially in the Middle East region, that affected the performance of GCC markets, said the financial powerhouse. 

 

These included the war on Gaza followed by Lebanon as well as the sudden change in power in Syria. The attacks in the Red Sea also had a significant impact on sentiments towards the region.

 

The surge reflected double-digit gains in key markets like the US, Germany, Japan and Hong Kong that were offset by a decline in some of the key emerging market economies including Brazil, Mexico and South Korea. 

 

Asian markets, including India and China, managed to report mid-single digit gains during the year, in line with the performance of the aggregate European index.

 

At the global level, the war continued between Russia and Ukraine resulting in sanctions on Russia. 

 

Meanwhile, the sluggish growth in the eurozone impacted the performance of markets in the region, while China also battled slowing economy and domestic demand, although the country announced several measures that supported markets towards the end of the year, it added.-TradeArabia News Service