Geopolitics influences GCC Markets in September, Oil turns volatile

Executive Summary

GCC markets ended the month of September in negative territory, losing 0.7% for the month, dragged down by volatile oil prices and negative performance in Kuwait markets. Oil witnessed one of the most volatile months in decades, after a devastating attack on Saudi Aramco oil refineries intensified concerns about growing instability in the world's most important crude-producing region. Saudi Arabia, Oman, Dubai and Qatar ended the month of September on a positive note, whereas Kuwait, Abu Dhabi and Bahrain declined. Kuwait's All Share Index fell for the second consecutive month, falling by 4.4% in September, suffering from the profit booking since the MSCI EM index inclusion announcement in July.

We see the following issues as key developments during the month of September:

1. Impact of Kuwait's emerging market upgrade on foreign ownership of banks
2. Equity Risk Premium of GCC countries - Have they been falling?
3. Boursa Kuwait Witnesses Rising Liquidity Levels
4. GCC Bond issuances witness an uptick in H1 2019
5. Why Kuwait is not following the Fed?