The performance of most indexes of global markets improved during 2019 compared to their performance in 2018. Morgan Stanley Capital International index (MSCI) for the world gained 25.2% at the end of the year compared with a decrease in the same index in 2018 by -10.4%. The rise in 2019 included the MSCI index for the United States, which rose by 29.1%. The American market weight and its impact are very extensive on the rest of global markets. Likewise, the comprehensive index of the two Americas increased by 28.5%. The MSCI index for Europe increased by 20% and the index itself increased by about 21.8% if we exclude the United Kingdom.
The position of Asia was similar to that of most of the European markets, MSCI Asia/Pacific index went up by 16.3% versus a drop by -15.6% in 2018. The Japanese index rose by 17.1%. The index of world markets increased by 19% if we exclude the USA. This reflects the weight of the American market in forming the index as we mentioned above.
Graph No.1 shows the continents’ performance according to MSCI indexes until the end of 2019 and comparing this performance with it at the end of 2018.
Graph No.2 presents the comparative performance of the growth (or decline) of indexes for a selected group of major financial markets (16 financial markets) during 2019, including Boursa Kuwait without taking into account the exchange rate movements. The graph indicates that compared to 2018 most financial markets indicators rose including Boursa Kuwait index according to AlShall Index. It came third by 28.9% increase compared to an increase by 10.9% and came in first place among these markets in the year 2018. It should be noted that the average rise for all markets included in the graph was about 19.7% at the end of 2019 (-10.8% in 2018).
Graph No.3 indicates the performance of 12 selected financial markets in the Middle East whereby 9 markets achieved positive growth and 3 markets declined. Boursa Kuwait ranked first among 12 financial markets in the Middle East in the gains of its index according to AlShall Index without adjusting the impact of the currency exchange rate against the US Dollar. The growth/ loss rate, which is not likely, for the indicators of those markets, was about 8.5% after a drop by -3.7% in 2018. This means that the ME markets’ performance was better in 2019.
The Kuwaiti market ranked first during 2019 as we mentioned by a 28.9% rise, according to AlShall Index. The Turkish market came next up by 25.4%, after -24.9% losses at the end of 2018. The Bahraini market came third with a 20.4% rise. The Pakistani market rose by 9.9%, then the UAE market rose by 9.3% after being the biggest loser at the end of 2018. The Omani market achieved the highest decline rate by -7.9%, followed by the Jordanian market with a decline of -4.9%.