GCC Market Review – February 2009

"In continuation of Global Investment House coverage on the GCC markets, we have come out with GCC Market Review – February 2009.



With no encouraging news on the economic front and further deepening of global financial crisis, GCC market continued their downward journey in the first month of 2009. The only market which managed to end the month in green was Saudi Arabia with a marginal M-o-M gain of 0.1%. Qatar market declined the most in January-2009 with Global DSM Index ending the month at 396.02 points i.e. an M-o-M decline of 23.2%. Among other markets, Kuwait market was down 12.8% for the month. In fact the decline in Kuwait market was much steeper during the month; however the market recovered to some extent during the last week of the month on the news about bailout package proposed by Kuwait government. The performance of the markets during the first month of 2009 was no different than what we have already seen in during the last quarter of 2008. The markets continue to be weighed down by adverse economic developments. Though governments in the region have been taking steps in the right direction to support the economy and market; these have proved to be insufficient to improve the market sentiments. For the period 4Q-2008, the profitability of the companies has declined; however the decline has been less than what was expected by the market. However it is very early to draw any conclusion as most of the companies are yet to declare their results.



In order to view the full report, kindly click on the link above."