'KAMCO Invest': Gulf Stock Markets Suffer Largest 10-Month Decline in September

- Gulf Morgan Stanley Index fell 3.5%

- Main 50 Index dropped 7.1%

- FTSE Abu Dhabi General Index rose 0.6%

- Dubai Financial Market General Index climbed 2.1%

A report by KAMCO Invest indicated that Gulf stock markets recorded their largest monthly decline in 10 months in September 2026, amid stalled efforts to end the war in the Middle East, which pushed crude oil prices to their highest levels in approximately four months.

Expectations that interest rates would remain elevated for longer also contributed to a broad wave of declines across various asset classes globally, with US 10-year Treasury yields touching 5.24% during the last week of the month.

However, yields retreated marginally, while global markets posted limited gains in the final sessions of the month following a report showing improved consumer spending in the United States, alongside the Personal Consumption Expenditures (PCE) Price Index coming in below expectations for August 2026.

The Gulf Morgan Stanley Index fell 3.5% in September 2026, marking its largest monthly drop since November 2025, amid a widespread decline affecting Gulf markets and several major global economies.

The report noted a decline in Kuwait Stock Exchange indices in September, driven by a broad downturn affecting most sectors. The market also experienced notable daily volatility, with the General Market Index falling 1.03% on September 22 before rebounding 0.86% on September 23.

Regarding different market indices, the Main 50 Index recorded the largest monthly decline of 7.1%, reflecting the widespread weakness in stocks included in the index. The Main Market Index and the General Market Index fell by 1.5% and 1.33%, respectively, while the First Market Index posted a relatively smaller decline of 1.30% during the month.

On a year-to-date basis, the First Market Index fell 3.5%, while the General Market Index declined 1.4%. Conversely, both the Main 50 Market Index and the Main Market Index recorded strong gains of 17.5% and 9.5%, respectively.

The Technology Sector Index recorded the largest decline during the month, dropping 50.1%, followed by the Consumer Goods Sector Index and the Utilities Sector Index, which fell by 7.4% and 3.6%, respectively. On the other hand, the Insurance Sector Index led the list of profitable sectors in September 2026 with gains of 11%, followed by the Healthcare Sector Index, which rose by 4.5%.

The FTSE Abu Dhabi General Market Index rose by 0.6% in September, securing gains for the fourth consecutive month after rising 0.9% in August, closing the month’s trading at 10,070.3 points. On a sectoral performance level, positive trends dominated overall sectoral performance, with 8 out of 10 sectoral indices recording gains.

The Dubai Financial Market General Index recorded gains for the second consecutive month, rising 2.1%, marking the largest monthly gains among Gulf markets during the month, closing September’s trading at 5,960.5 points. On a sectoral level, the balance favored profitable sectors, with 5 out of 8 sectoral indices recording gains in September, while 2 out of the remaining 3 indices posted declines.

The Qatar Stock Exchange continued its decline for the fourth consecutive month in September, recording the second-largest monthly drop among Gulf markets. The All-Share Index fell by 5.4 percent, closing the month’s trading session at 3,640.36 points. On a year-to-date basis, the Qatar Stock Exchange 20 Index declined by 14.1 percent, marking the largest drop in the Gulf region, while the Qatar Stock Exchange All-Share Index fell by 10.3 percent.

At the sectoral level, declines clearly dominated sectoral performance, with six out of seven sectoral indices posting losses in September 2026.

The Muscat Securities Market 30 Index recorded a marginal decline of 0.5 percent, closing the month’s trading at 7,566.8 points. This limited monthly drop reduced the index’s year-to-date gains through 2026 to 29 percent, although it remains the highest among Gulf markets.