Kuwait Financial Centre “Markaz” recently released a semi-annual review of its “What to expect in 2012” report in which the authors review the first half of 2012 and project the remainder of 2012 based on an assessment of various drivers that affect the performance of GCC stock markets. The first half of 2012 was mostly about markets reacting to events in the developed world. The regional markets clearly lacked major triggers except for the disappointment from MSCI, which came in June.
Market talks, early in the year, about Saudi Arabia allowing foreign investor participation did not see any constructive development as well. Concerns about Chinese hard landing also affected market sentiment due to its impact on commodity demand. Anemic growth in developed countries, combined with slowdown in emerging markets (especially China) pushed down Oil prices in the first half. Brent Crude lost 8.9% in the first half after a good 14.4% rally in the first quarter.
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