Bearbull Private Banking Benchmark KSA - June 2026

24 Aug

Bearbull Private Banking Benchmark KSA – June 2026

Posted by BearBull Group In Bearbull Multi Asset indices 0 comment

Strategies down in June

Indices Performances

June YTD

BBGI Saudi Private Banking index « Low Risk » -0.17% +5.35%

BBGI Saudi Private Banking index « Moderate Risk » -0.67% +7.53%

BBGI Saudi Private Banking index « Dynamic Risk » -1.17% +9.72%

Monthly Comments (performances in AED)

The Bearbull Private Banking KSA indices ended the month in negative territory. The low-risk index fell by -0.17%, the moderate-risk strategy followed a similar trajectory, losing -0.67%, and the dynamic-risk approach posted a more pronounced decline (-1.17%). Since the beginning of the year, however, cumulative performance remains favorable (+5.35%, +7.53%, and +9.72%, respectively). Bond markets diverged in June. The domestic segment advanced by +0.38%, while international sukuk posted a stronger performance of +0.50%. In cumulative terms, both asset classes moved in opposite directions (+0.77% and -0.33% respectively). The equity market showed contrasting trends during the month. The Saudi market stood out in particular with a correction of -2.16%, while international equity markets recorded a solid gain of +1.79%. Over the year as a whole, Saudi equities remain modestly positive with a cumulative gain of +3.23%. Conversely, international equity markets are performing much better, posting a remarkable cumulative gain of +20.00% since January. The real estate segment also diverged, with a domestic performance of -0.76% and an international performance of +1.14%. Since January, both asset classes have posted solid cumulative gains (+5.59% and +11.07%, respectively). Commodities ended the month down sharply (-10.06%) but remained strongly positive cumulatively (+24.02%), driven in particular by the strong performance of gold. Private equity posted one of the weakest monthly performances (-5.37%) and remained negative for the year as a whole (-18.14%).

Financial market developments (performances in AED)

The passage into the month of June confirms the entrenchment of a global stagflation dynamic that is profoundly altering investors’ perception of risk. While the memorandum of understanding in the Middle East had raised hopes of an immediate positive impact on inflationary risks, economic data and central bank actions raising concerns about risks have reawakened volatility. Market sentiment, until recently immunized by a form of indifference toward geopolitical risks, has shifted into a phase of doubt. The supply shock affecting energy and agricultural commodities is finally beginning to visibly impact corporate profit margins and household purchasing power. Central banks, confronted with consumer price indices that refuse to converge toward their 2% targets, are hardening their tone, forcing a recalibration of asset allocations. The past resilience of equity indices, largely driven by the speculative waves in technology and artificial intelligence, is now being severely tested by the general and mechanical rise in risk premia demanded by investors. The current financial environment is also characterized by a marked deterioration in quantitative risk indicators. While May still showed residual complacency, June marks an inflection point where macroeconomic reality asserts itself. The performance of global equity indices is losing momentum in the face of rising interest rates and the new restrictive positioning of central banks, while international real estate shows highly divergent trajectories depending on the geo-graphic region, reflecting increased stress in the credit segment. Bond markets are now capturing the persistence of inflationary pressures much more adequately, definitively eliminating hopes of a short-term rate cut and readjusting yields upward (the performance of international bonds adjusting to -0.71% in June versus +0.34% in May). Our global risk scores for the equity segment have crossed critical thresholds, validating the need to adopt a defensive wealth management strategy with a high degree of selectivity.

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