Equity markets in the GCC declined in September amid concerns over the global economy, rising inflation and lower oil prices.
Markets across the region moved in tandem with global markets last month, with the S&P GCC composite index slipping by 7%, Kuwait Financial Centre (Markaz) said in its latest analysis.
Kuwait, Saudi Arabia and Qatar equity indices fell the most, losing 7.8%, 7.1% and 5.4%, respectively, Markaz said in a report. Dubai equity index fell by 3% while Abu Dhabi posted a 1.3% decline over the same period.
"The decline in GCC markets was driven by lower oil prices, concerns over global economic growth and higher than expected inflation in the United States," Markaz said.
"Regionally, most of the GCC markets moved in tandem with global markets, with S&P GCC composite index falling by 7%," the report said.
In Saudi's stock market, also known as Tadawul, there has been a decline in transactions and traded shares, although the total equity market capitalisation edged higher by 7.56% to SAR10,832.85 billion (42,888.76 billion) at the end of September.
During the first nine months of the year, Tadawul's total value of shares traded fell by 21.57% to SAR10,832.85 billion ($373.57 billion), while volumes traded dropped 36.08% to 35.35 billion shares, according to a separate report.
The kingdom's stock market recorded a 4.25% decline in transactions, which stood at 67.85 million over the same period.
Saudi Arabia's GDP is forecast to grow at 7.5% this year, with a financial surplus of about 6.3%.
Oil price decline
Oil traded lower in September, with prices falling by 8.8%. On a year-to-date basis, oil prices were still up 13.1%.
"Oil prices weighed down due to concerns over recession and a steady decline in global demand, in addition to a potential Iran Nuclear deal that is expected to boost oil supply," Markaz aid.
However, it noted that lower oil production and higher demand from China could support oil prices.
"OPEC+ cut down on production, falling short of 3.583 million barrels per day in August... and expectation of increase in demand from China project some positive outlook for oil prices," Markaz said.
OPEC+ has plans to bring down output by more than a million barrels per day next week, according to Reuters.
(Reporting by Cleofe Maceda; editing by Seban Scaria)