Despite a strong profit reporting season from leading corporations across MENA, regional equity markets suffered losses in July 2008 leading to them underperforming many of their global peers. According to a research report from leading regional investment banking firm Rasmala, the Abu Dhabi Index (ADX) was the only market to post positive returns in July. All other regional markets suffered from seasonally low trading volumes, lingering concerns over the Iran nuclear issue, a busy IPO schedule in Saudi Arabia and the UAE and profit taking in the previously strong markets of Kuwait and Oman. The broad MENA market index closed 5 percent lower for the month, overshadowing excellent valuations and positive corporate news. "Global equity markets, particularly the United States, recovered some of their poise in July as oil prices corrected lower giving much needed relief to the global economy,'" said Khaled Al-Masri, partner, Asset Management at Rasmala. "In our view, the relatively weak performance versus other global markets over the month is a temporary phenomenon as fundamentals and valuations remain compelling . The temporary downturn derives in the main from it being a seasonally slow period and domestic investors preference to invest in IPOs as opposed to the secondary market. Investor sentiment suffered as a number of technical barriers in Oman, Saudi Arabia and Egypt in particular. were breached in thin trading volumes." The ADX was the star performer over the month and continued to outperform its Dubai peer. Strong performances by First Gulf Bank and Etisalat, on the back of their impressive second quarter earnings, supported the market while fresh margin positions opened at the beginning of the month provided a further push to the index which touched the psychologically important 5000 level. The region's largest market, Saudi, suffered the most in July. The Tadawul index lost over 6.5 percent for the month with the research report predicting that a regulatory or geo-political catalyst is needed for a rebound in momentum and domestic investor sentiment. The Egyptian market continued to suffer from a host of domestic and international factors and lost a further 6 percent over the month with year-to-date losses reaching over 12 percent. The previously resilient Omani and Kuwaiti markets could not resist the weak sentiment and lost 5 percent and 3 percent, respectively, with the Doha Stock Market ending 2 percent lower. The ADX was the star performer over the month and continued to outperform its Dubai peer. Strong performances by First Gulf Bank and Etisalat, on the back of their impressive second quarter earnings, supported the market while fresh margin positions opened at the beginning of the month provided a further push to the index which touched the psychologically important 5000 level. The region's largest market, Saudi Arabia, suffered the most in July. The Tadawul index lost over 6.5 percent for the month with the research report predicting that a regulatory or geo-political catalyst is needed for a rebound in momentum and domestic investor sentiment. The Egyptian market continued to suffer from a host of domestic and international factors and lost a further 6 percent over the month with year-to