The Dubai Financial Market (DFM) is the best-performing equity market index in the GCC, rising 24.8% in the year to September, according to a Kamco Invest report.

The DFM general index witnessed a monthly gain of 2% in September 2023 to close at 4,163.58 points, registering its sixth consecutive monthly gain.

The real estate index recorded the biggest monthly gain, climbing 8.6% to close at 7,457.1 points, mainly driven by blue chip Emaar Properties’ nearly 13.9% price gain last month.

Saudi Arabia followed with gains of 5.5% in the first nine months, followed by Bahrain (2.3%). The rest of the markets in the GCC were in the red.  

On a monthly basis, Saudi Arabia’s TASI was the biggest decliner, down 3.8% in September, followed by Oman and Kuwait, slipping 2.5% and 1.7%, respectively.

Most GCC indices were in the red on the sector performance front, including banks dropping by 3.8%. On the other hand, gainers were few but included real estate and energy, with gains of 2.4% and 1.6%, respectively.

Overall, GCC equity markets declined for the second consecutive month in September, taking cues from the fall in global equity markets. The MSCI GCC index witnessed a 2.7% drop, wiping off gains since the start of the year.

The global decline was led by investor fears that interest rates will remain higher for longer as inflation and the economy remain too strong for the central banks to cut rates.

All key indices such as the MSCI World Index, the S&P 500 and the MSCI GCC index were down in September and during Q3 2023, Kamco report said.

(Editing by Seban Scaria seban.scaria@lseg.com)