A broad-based rally in GCC markets coupled with elevated oil prices have pushed the MSCI GCC aggregate benchmark up 17.7% during Q1-2022, the biggest gains since Q2-2009.

Gains were supported by four consecutive months of gains in the index, according to Kamco Invest a premier investment company based in Kuwait.

All markets were in the green during quarter with Abu Dhabi reported the biggest gain of 17.2% followed by Qatar and Saudi Arabia with gains of 16.4% and 16.0%, respectively.

Positive performance

In terms of monthly performance, the MSCI GCC index was up 5.2% during the month backed by positive performance in all GCC markets during March-2022.

On the sectoral front, the GCC Capital Goods, Materials and Banks sectors topped during Q1-2022 with gains of almost 20%. Energy and Healthcare followed with growth of 18.2% and 15.1%, respectively.

Consumer Durable and Apparels and Pharma were the only sectors that declined this quarter by 10.0% and 5.1%, respectively. Monthly performance also saw Materials at the top with a gain of 9.7% followed by Healthcare and Cap Goods indices.

Crude oil volatility

Moreover, despite recent weakness, the disruption caused on the supply front pushed crude oil prices to a 7-quarter high growth of almost 40% during Q1-2022.

The volatility in oil prices saw prices reaching a 14-year intraday high of $139.1/b during the first week of March 2022 but closed the month at $107.9/b.

Global equity markets also had a positive month with the MSCI World index gaining 2.5% backed by peace talks between Russia and Ukraine.

US market

However, a resurgence of Covid-19 cases in China that resulted in lockdowns in several large cities pushed the Chinese gauge down 6.1% during the month while also lowering the MSCI Emerging Market index by 2.5%.

The US market was up 3.6% while the European benchmark showed marginal growth of 0.6% during the month.

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