GCC equities shed $21b in Q2 | Economy | Saudi Gazette

GCC equities shed $21b in Q2 | Economy | Saudi Gazette:



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GCC equity markets experienced a strong correction in the second quarter of 2014, triggered primarily by the deteriorating situation in Iraq, according to a report by National Bank of Kuwait (NBK).



As of the end of June, GCC markets’ capitalization stood at $1.06 trillion, having shed $21 billion in Q2, the report found. The S&P GCC index was off by 1.percent during the quarter, reducing gains from the beginning of the year to eight percent.



GCC markets had seen strong rallies in the first five months of 2014, led especially by gains in UAE and Qatar. The decision by MSCI to upgrade the UAE and Qatar to “emerging market” status from “frontier markets”, which took effect in June, gave a strong boost to regional markets. In addition to that, the outlook for the GCC economies remained favorable especially when compared to emerging markets that continued to show signs of weakness. "



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