Gulf markets lose USD33.4-billion in market cap in the first half of 2011 - Zawya

Gulf markets have lagged other global emerging and developed markets for years. Even as the S&P 500 and other emerging market indices rescaled their pre-Lehman levels, Gulf markets have stayed listless, drifting lower and lower until they have plumbed new depths. But have the markets finally bottomed out? With the Gulf economies seeing major improvement in their fortunes, thanks to government stimulus, will it rub off on the markets as well in the second half of the year?

Gulf markets lost USD33.4-billion in market capitalization in the first half of the year due to a number of factors that conspired to negatively impact investor sentiment.

According to Global Investment House, Kuwait Stock Exchange saw the biggest slide, losing 13.4% in the first half of the year, or USD17.7-billion in market cap.

Apart from the general negative sentiment surrounding regional turmoil, Kuwait also suffered due to internal economic lethargy and weakness in the domestic financial services and real estate sector.

* username: rupertbu