– Kuwait?’s strong performance was led once again by the main market (13.4% q/q), with the strongest gains coming from the technology, oil and gas, real estate, and industrial sectors, according to a report released by the National Bank of Kuwait (NBK) on Tuesday Market capitalization in turn rose to KD 37 billion, the highest since 2010, while average daily turnover was an elevated KD 59 million/day, reflecting a well-endowed, liquid and active market. (USD=KD 0.3).
Kuwait?’s All-Share index was up an impressive 15% in the year to end-June, trailing Abu Dhabi and Saudi Arabia.
A positive but uncertain outlook for equities in 2H2021 Accommodative central bank policies and economic recovery expectations will likely continue to lend support to markets in 2H21.
This bullish sentiment is reflected in global stocks continuing to set all-time highs, versus softer demand for some safe-haven assets such as gold and the US dollar, which despite recent increases remain relatively subdued.
With that said, near-to-medium term market prospects are subject to notable downside risks stemming from pandemic, inflation, and policy-related uncertainty (tapering soon and rate hikes on the medium-term horizon), factors which have led to softer market momentum as of late.
Steep valuations, especially in US markets, are an additional source of concern.
The possibility of higher bond yields in line with the expected unwinding of stimulus, higher inflation, and planned US policy rate hikes in 2023, may also prove to be a drag on equity market sentiment.
Moreover, GCC markets will continue to be influenced by oil prices, the pace of structural reforms, geopolitics, and pandemic-related development GCC markets outperformed their global counterparts in 2Q21, building on the strong gains of 1Q, with the MSCI GCC up a solid 8.7% q/q helped by higher oil prices, vaccine rollouts, and a better fiscal outlook.
In the lead were Abu Dhabi, Kuwait, and Saudi Arabia up 16% 11% and 11% respectively, with investor confidence in the latter boosted by improving macro data and the announcement of a series of large investment plans as part of a major economic diversification push.
Solid gains were also seen in Dubai, Oman and Bahrain (9-10% q/q)
Source: Kuwait News Agency