The recent correction in the equity markets has led to sharp drop in the share prices. The EU debt crisis have shaken the confidence in the recovery process, as a result investors globally sold stocks.
The correction gripped all the markets, including GCC. The performance of some of the markets in the month of May is one of the worst recorded (mainly KSE and S&P 500) in the past 10 years (that's how far, i have analyzed) - refer to my post dated 4th and 8th May -10.
KSE dropped 8.22%; S&P 500 down 8.20%, Nikkei 225 dived 11.65% etc.
Additionally, find below are some charts depicting YTD performances for various indices.
Chart 1 comprise of Baltic Dry Index (BD), S&P 500 and MSCI BRIC Index.
Chart 2 in the YTD performance of MSCI BRIC Index.
Chart 3 comprise of KSE Price Index (white line) Vs MSCI GCC (orange line) Index and S&P GCC Index (green line).
Chart 4 and 5 are the absolute and relative performance of KSE Price Index as against MSCI GCC Index.
As you can see that most of the indices are trailing well below the 200D Moving Averages, accept BD which has risen in these turbulent times - good for Dry Bulk (shipping) stocks.
Whats more, this is the sort of correction we all were waiting for....so why wait on the sidelines now, lets jump??.
Happy Investing !!!
Chart 1
Chart 2
Chart 3
Chart 4
Data: Bloomber, Wealthy Opinions
Chart 5
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