Mubasher: Equity markets in the Gulf region have recorded the highest monthly gains over the two years in January, according to the ‘Monthly Markets Review’ report released by Kuwait Financial Centre (Markaz).
Investor sentiment was optimistic with the entry of foreign funds, an uptick in oil prices, and expansionary budget policies being expected to endorse corporate earnings growth in 2019, Markaz report added.
Boursa Kuwait registered a strong start in 2019, gaining 2.5% in January, following a decline in the fourth quarter of 2018.
Markaz monthly report commented on the performance of Boursa Kuwait, saying “The index performance was led by banking stocks, which were boosted by the decision to lift the foreign ownership cap of 49% on domestic banks. National Bank of Kuwait and Boubyan Bank gained 4.1% and 3.4% respectively for the month.”
“The news of Kuwait Financial House and Ahli United Bank agreeing upon a merger invoked mixed response from shareholders, as Ahli United Bank soared by 13.7% for the month while KFH witnessed its share price fall by 0.5% in the same period,” it added.
As for the S&P GCC index, Markaz noted that the index has recorded its best kick-off in recent years, rising by 6.8% in January, as the index was backed by the strength in the Saudi stocks.
“Saudi Arabia outperformed its GCC peers, rising up by 9.4% in January. Qatar, Abu Dhabi, Bahrain, and Kuwait also ended the month positively, gaining 4.1%, 4.0%, 2.6% and 2.5% respectively,” the report said, adding, “Dubai market, which was the biggest loser of 2018, witnessed a rise of 1.5%. Oman was the only drag on the index, losing 3.6% for the month.”
