Stock markets in the MENA region closed October on a negative note with varying degrees of losses despite exhibiting a slight rally earlier in the month, according to Al Masah Capital’s latest market update. Sellers wrested back control in the third week of October and last week’s price action reinforced their strength. Buyers were not willing to put up a fight and after having given up their early October gains, they stepped aside and let October go down as another red month.
The negative tone to last week ensured that October ended with an average monthly drop of 1% across the regional indices. UAE and Saudi were the main culprits, Saudi, Abu Dhabi and Dubai down 3.8%, 4% and 2.5% respectively. Qatar and Egypt were the only bright stops, up 1.2% and 2% each on the month and allowing for some roots of optimism.
October adds to the annual losses and reinforces the view that the August selloff still has legs. Investors looking to reenter the markets may take comfort that both September and October did see efforts at lifting the markets just that sellers remain stronger and rallies are taken as opportunities to sell more. Going into next week and the start of November, one will look for signs if this current market view has any chance of changing.
