Abu Dhabi, Dubai snap multi-month rallies in August

Abu Dhabi’s FTSE ADX index dropped 2.7% to 10.1k points in August, its first monthly loss since April and the biggest monthly decline in the GCC, trimming YTD gains to 7.2%. Eight of 10 sectors ended lower, including consumer discretionary (-6.0%), telecoms (-4.8%), and financials, according to a Kamco Invest report (pdf). Property was the standout sector, gaining 1.4%.

Dubai’s DFM index also snapped a four-month upwards streak, slipping 1.6% to 6.1k points. The losses were concentrated in heavyweights — banks (-3.6%), real estate (-5.6%), and investment companies (-3.5%). Gains in telecoms (+4.5%) and materials (+3.9%) offered some balance, but not enough to prevent the first monthly decline since March. The benchmark is up 17.5% YTD, the highest in the GCC.

Zooming out: Gulf stock markets lost momentum in August, ending two consecutive months of gains, with the MSCI GCC index down 2.3% despite rallies in the US, Europe, and emerging markets. The pullback came as Brent crude slid 6.1% on supply glut concerns, even as global demand showed signs of recovery. Meanwhile, the index is up 1.4% YTD.

ELSEWHERE IN THE REGION- Saudi Arabia’s benchmark index TASI shed 2.1% inAugust to close the month at 10.7k points. Egypt’s EGX30 rose 2.8% last month, closing at 35.1k points. Qatar’s QE index was broadly flat, easing 0.3% to 11.2k points. Oman was the GCC’s bright spot, with the MSM 30 gaining 5.2% in August to close at 5k points.

Across the region, sector performance was mixed. GCC materials outperformed thanks to petrochemicals and Saudi heavyweights, while ins. (-7.2%) and healthcare (-3.9%) were among the weakest. Energy was flat, and banks delivered uneven results, pressured in Saudi and Kuwait but stronger in Oman and Qatar.