Business & Money | Sunday 3 July, 2016 2:18 pm |

After the initial panic selloff in line with global markets, regional indexes gradually tried to make the losses back for the rest of the week. As global markets calmed down with indications that most key central banks will re-engage in monetary easing, regional markets also attempted to put a positive spin on what has been a significant shock to the global economic system.

With last week signaling the close for the month of June, slight window dressing at the end also skewed the final resting place. Abu Dhabi and Qatar were the clear winners for the month, both gaining 5.8% and 3.6% respectively; AD benefiting from some of its key benchmark constituents like Etisalat and NBAD being in the news while Qatar saw some value buying after a brutal May. The biggest loser for the month was Egypt with a steep 7% decline.

After a stellar March and its 20% gain the Egyptian market has gradually been giving those gains back and last month with global risk rising only compounded the selling. The two big regional markets, Dubai and Saudi were relatively quiet, staying close to breakeven for the month which was a better reflection of the average monthly performance for regional markets which was also just a minor gain of 0.29%. Cumulatively June performance showed a lackluster regional market that was given a late month shock by a global event whose long term implications still need to play out. 

With Eid holidays starting off the month of July, the first few weeks of the new month may continue the trend of low volume, directionless trading; however global markets will be watched very carefully as we potentially may be in the midst of a significant new market trend.