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Al Bawaba
03-06-2025
- Business
- Al Bawaba
Markaz: Kuwait equities were positive during the month led by gains in Premier Market stocks
Kuwait Financial Centre 'Markaz' released its Monthly Market Review report for May 2025. Kuwait equity market was positive during May 2025, supported by strong corporate earnings for some companies and improvement in oil prices. Global markets were buoyed by signs of easing trade tensions. Oil prices increased for the month on the back of de-escalation of trade tensions even as supply concerns tempered markets were positive in May 2025, led by gains in Premier Market stocks. Kuwait's All Share Index (price returns) gained 1.9% supported by positive corporate earnings for some companies. Consumer staples and oil and gas sectors were the top gainers, rising 16.2% and 6.9% respectively. The banking sector index increased 1.6% for the month. Among banking stocks, Burgan Bank and Warba Bank were the top gainers, rising 12.4% and 11.3% respectively during the month. Warba bank has increased its paid-up capital by 100% to KD 436.7 million. Warba Bank and Gulf Bank have initiated discussions to explore a potential merger of the two banks. This is Gulf Bank's third merger discussion following its earlier discussion with Al Ahli Bank of Kuwait (2023) and Boubyan Bank (January 2025).Among Premier Market stocks, Jazeera Airways and Boursa Kuwait were the top gainers, rising 36.7% and 17.7% respectively. Jazeera Airways has reported a 274.8% y/y increase in its net profit for Q1 2025, totaling KD 4.7 million. The increase in passenger traffic and an increase in ancillary revenue after the introduction of new services and products supported growth in profits.S&P has affirmed Kuwait's credit rating at A+ with stable outlook, citing strong public and external balance sheets, backed by significant stock of government financial assets. The agency expects Kuwait's fiscal deficit to remain high, averaging 8.9% of GDP between 2025 and 2028. However, the agency expects the fiscal deficit to decline 6% of GDP by 2028 from about 14% in 2025, due to higher oil revenue on the back of higher production and measures taken by the government to increase non-oil S&P GCC Composite index declined by 2.4% in May 2025 weighed by decline in Saudi equities. Saudi equity index declined by 5.8% during the month, amid decline in earnings for some majors like Saudi Aramco and SABIC, concerns on long-term impact of broader weakness in oil prices on government spending and 12% m/m decrease in the country's oil exports in March 2025. Saudi Telecom Company and Al Rajhi Bank's stock prices declined by 8.0% and 6.5% respectively for the month. flynas, Saudi Arabia's budget airline, has launched its IPO, seeking to raise SAR 3.9 billion (USD 1.0 billion) and SAR 4.1 billion (USD 1.1 billion).Abu Dhabi's equity index increased by 1.6% in May 2025, supported by gains in banking stocks. First Abu Dhabi Bank and Abu Dhabi Commercial Bank gained 7.2% and 3.8% respectively for the month, likely due to continuing momentum from the positive earnings report last month. Dubai's equity index gained 3.3% for the month, supported by gains in blue chips. Emirates NBD gained 9.0% during the month. The bank has received in-principle regulatory approval to set up wholly owned subsidiary in India. It has also offered USD 6 to 7 billion in an all-cash deal for a 61% stake in India's government owned IDBI Bank. Qatar's equity markets were flat for the Arabia's real GDP increased by 2.7% y/y in Q1 2025, supported by non-oil economic activity and government activity. The country's fiscal deficit rose to USD 15.65 billion in Q1 2025 from USD 3.30 billion in Q1 2024 due to an 18% y/y decline in oil revenues and a 5% y/y rise in expenditure. IPO proceeds across MENA region for Q1 2025 reached USD 21 billion, registering a 106% y/y rise, according to EY. Saudi Arabia had been the epicenter of activity with 12 of the 14 listings taking place in the markets were positive during May 2025, supported by de-escalation of trade tensions. The MSCI World and S&P 500 indices rose by 5.7% and 6.2% respectively for the month. U.S and China have agreed to pause levy of additional tariffs announced in April 2025 for 90 days and to also lower tariff levels. The U.S and U.K have also arrived at a trade deal to lower tariffs, giving room for optimism that U.S might strike such deals with other countries as well. Nasdaq 100 surged by 9.0% during the month on the back of strong earnings reports and expansion plans from tech companies. The MSCI EM index gained 4.0% during the equities rose by 2.1%, supported by easing trade tensions, stimulus measures, rate cuts and positive economic data. Indian equities also gained by 1.5% for the month, on the back of institutional interest and earnings momentum.U.S inflation stood at 2.3% y/y in April 2025, slightly down from 2.4% y/y reading in March 2025. The U.S labor market added 177,000 jobs in April, down from 185,000 jobs added in March. The yield on the 10-year US treasury notes rose by 24 bps during the month to 4.41%. The U.S Fed held rates steady in May 2025, citing an increased risk of inflation and unemployment and higher uncertainty around the economic outlook, in the backdrop of recent tariffs. Moody's has downgraded the U.S' sovereign credit rating to Aa1 from Aaa, citing concerns on the growing debt of over USD 36 trillion due to increasing government expenditure and flat government revenues. The U.S House of Representatives has also passed the tax and spending bill which would increase tax breaks and defence spending, weakening the country's fiscal (Brent) prices closed the month at USD 63.9 per barrel, rising by 1.2% during the month. While the easing of trade tensions lent support, concerns of rise in supply weighed on prices. In the backdrop of U.S sanctions on Iran and ongoing discussions between the two countries on nuclear deal, easing of sanctions would enable Iran to re-enter oil market. This would add 400,000 bpd to the global crude supply. OPEC+ is also widely expected to continue to hike output in July 2025. Gold prices closed at USD 3,289, closing flat for the month, maintaining its YTD gain of 25.4%. While expected de-escalation of trade tensions had supported markets during the month, further developments on trade relations between U.S-China and U.S-EU would continue to impact markets, with persisting concerns over economic outlook and inflation. While progress in trade relations and volatility in oil prices might continue to influence GCC markets, sustained momentum in non-oil economic activity and improvement in oil GDP are likely to support investor sentiments.
Zawya
02-06-2025
- Business
- Zawya
Markaz: Kuwait equities were positive during the month led by gains in Premier Market stocks
Kuwait: Kuwait Financial Centre 'Markaz' released its Monthly Market Review report for May 2025. Kuwait equity market was positive during May 2025, supported by strong corporate earnings for some companies and improvement in oil prices. Global markets were buoyed by signs of easing trade tensions. Oil prices increased for the month on the back of de-escalation of trade tensions even as supply concerns tempered gains. Kuwait markets were positive in May 2025, led by gains in Premier Market stocks. Kuwait's All Share Index (price returns) gained 1.9% supported by positive corporate earnings for some companies. Consumer staples and oil and gas sectors were the top gainers, rising 16.2% and 6.9% respectively. The banking sector index increased 1.6% for the month. Among banking stocks, Burgan Bank and Warba Bank were the top gainers, rising 12.4% and 11.3% respectively during the month. Warba bank has increased its paid-up capital by 100% to KD 436.7 million. Warba Bank and Gulf Bank have initiated discussions to explore a potential merger of the two banks. This is Gulf Bank's third merger discussion following its earlier discussion with Al Ahli Bank of Kuwait (2023) and Boubyan Bank (January 2025). Among Premier Market stocks, Jazeera Airways and Boursa Kuwait were the top gainers, rising 36.7% and 17.7% respectively. Jazeera Airways has reported a 274.8% y/y increase in its net profit for Q1 2025, totaling KD 4.7 million. The increase in passenger traffic and an increase in ancillary revenue after the introduction of new services and products supported growth in profits. S&P has affirmed Kuwait's credit rating at A+ with stable outlook, citing strong public and external balance sheets, backed by significant stock of government financial assets. The agency expects Kuwait's fiscal deficit to remain high, averaging 8.9% of GDP between 2025 and 2028. However, the agency expects the fiscal deficit to decline 6% of GDP by 2028 from about 14% in 2025, due to higher oil revenue on the back of higher production and measures taken by the government to increase non-oil revenue. The S&P GCC Composite index declined by 2.4% in May 2025 weighed by decline in Saudi equities. Saudi equity index declined by 5.8% during the month, amid decline in earnings for some majors like Saudi Aramco and SABIC, concerns on long-term impact of broader weakness in oil prices on government spending and 12% m/m decrease in the country's oil exports in March 2025. Saudi Telecom Company and Al Rajhi Bank's stock prices declined by 8.0% and 6.5% respectively for the month. flynas, Saudi Arabia's budget airline, has launched its IPO, seeking to raise SAR 3.9 billion (USD 1.0 billion) and SAR 4.1 billion (USD 1.1 billion). Abu Dhabi's equity index increased by 1.6% in May 2025, supported by gains in banking stocks. First Abu Dhabi Bank and Abu Dhabi Commercial Bank gained 7.2% and 3.8% respectively for the month, likely due to continuing momentum from the positive earnings report last month. Dubai's equity index gained 3.3% for the month, supported by gains in blue chips. Emirates NBD gained 9.0% during the month. The bank has received in-principle regulatory approval to set up wholly owned subsidiary in India. It has also offered USD 6 to 7 billion in an all-cash deal for a 61% stake in India's government owned IDBI Bank. Qatar's equity markets were flat for the month. Saudi Arabia's real GDP increased by 2.7% y/y in Q1 2025, supported by non-oil economic activity and government activity. The country's fiscal deficit rose to USD 15.65 billion in Q1 2025 from USD 3.30 billion in Q1 2024 due to an 18% y/y decline in oil revenues and a 5% y/y rise in expenditure. IPO proceeds across MENA region for Q1 2025 reached USD 21 billion, registering a 106% y/y rise, according to EY. Saudi Arabia had been the epicenter of activity with 12 of the 14 listings taking place in the country. Global markets were positive during May 2025, supported by de-escalation of trade tensions. The MSCI World and S&P 500 indices rose by 5.7% and 6.2% respectively for the month. U.S and China have agreed to pause levy of additional tariffs announced in April 2025 for 90 days and to also lower tariff levels. The U.S and U.K have also arrived at a trade deal to lower tariffs, giving room for optimism that U.S might strike such deals with other countries as well. Nasdaq 100 surged by 9.0% during the month on the back of strong earnings reports and expansion plans from tech companies. The MSCI EM index gained 4.0% during the month. Chinese equities rose by 2.1%, supported by easing trade tensions, stimulus measures, rate cuts and positive economic data. Indian equities also gained by 1.5% for the month, on the back of institutional interest and earnings momentum. U.S inflation stood at 2.3% y/y in April 2025, slightly down from 2.4% y/y reading in March 2025. The U.S labor market added 177,000 jobs in April, down from 185,000 jobs added in March. The yield on the 10-year US treasury notes rose by 24 bps during the month to 4.41%. The U.S Fed held rates steady in May 2025, citing an increased risk of inflation and unemployment and higher uncertainty around the economic outlook, in the backdrop of recent tariffs. Moody's has downgraded the U.S' sovereign credit rating to Aa1 from Aaa, citing concerns on the growing debt of over USD 36 trillion due to increasing government expenditure and flat government revenues. The U.S House of Representatives has also passed the tax and spending bill which would increase tax breaks and defence spending, weakening the country's fiscal position. Oil (Brent) prices closed the month at USD 63.9 per barrel, rising by 1.2% during the month. While the easing of trade tensions lent support, concerns of rise in supply weighed on prices. In the backdrop of U.S sanctions on Iran and ongoing discussions between the two countries on nuclear deal, easing of sanctions would enable Iran to re-enter oil market. This would add 400,000 bpd to the global crude supply. OPEC+ is also widely expected to continue to hike output in July 2025. Gold prices closed at USD 3,289, closing flat for the month, maintaining its YTD gain of 25.4%. While expected de-escalation of trade tensions had supported markets during the month, further developments on trade relations between U.S-China and U.S-EU would continue to impact markets, with persisting concerns over economic outlook and inflation. While progress in trade relations and volatility in oil prices might continue to influence GCC markets, sustained momentum in non-oil economic activity and improvement in oil GDP are likely to support investor sentiments. About Kuwait Financial Centre 'Markaz' Established in 1974, Kuwait Financial Centre K.P.S.C 'Markaz' is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.44 billion (USD 4.67 billion) as of 31 March 2025. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors' horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz. For further information, please contact: Sondos Saad Corporate Communications Department Kuwait Financial Centre K.P.S.C. "Markaz" Email: Ssaad@
Reuters
30-05-2025
- Business
- Reuters
Foreign investors raise bets that India stock market rally may stall
May 30 (Reuters) - Foreign investors are becoming more cautious about the Indian stock market, indicating a three-month rally may run out of legs despite retail traders growing optimistic, according to monthly derivatives data analysed by two brokerages. The Nifty 50 (.NSEI), opens new tab has risen about 12% from March through May, largely due to better-than-expected corporate earnings and easing global trade risks. That is nearly double the 6.6% gain in the MSCI Emerging Markets index (.dMIEF00000PUS), opens new tab in that time. Foreign portfolio investors (FPIs) pumped $2.66 billion into Indian equities over that period and cut their short positions on the Nifty. A short seller borrows stock at a higher price betting its value will decline, at which point they buy the stock and pocket the profit. However, FPIs have started the June derivatives series -- which runs from May 30 to June 25 -- with about $2 billion in Nifty index futures shorts, the highest since February, according to Nuvama Alternative and Quantitative Research. In contrast, retail investors and high-net-worth individuals (HNIs), called the client category, turned bullish with long positions worth $1.54 billion on Nifty futures, compared with $546 million in shorts from early May. "This divergence sets up a potential tug-of-war between institutional caution and retail optimism, and could lead to a brief pause in the market rally in June," said Abhilash Pagaria, head of Nuvama. Indeed, the Nifty's gains have weakened in each month -- from 6.3% in March to 3.5% in April and to about 2% in May. "Markets appear to be waiting for some concrete cues before turning bullish," said Sriram Velayudhan, VP at IIFL Securities. Velayudhan expects the Nifty 50 to trade between 24,300 and 25,300 points over the June series, compared with its current level of about 24,800 points. Analysts expect the Nifty to hit new highs by end-2025, but say a correction is likely in the next three months, according to a Reuters poll.
Bloomberg
26-05-2025
- Business
- Bloomberg
Goldman Sachs Expects Stronger Yuan to Boost Chinese Stocks
Chinese stocks are expected to benefit from further gains in the yuan, which has been showing resilience amid the country's trade spat with the US, according to strategists at Goldman Sachs Group Inc. Every 1% appreciation of the yuan versus the dollar can boost Chinese equities by 3% thanks to factors including improved corporate earnings outlook and stronger foreign inflows, strategists including Kinger Lau wrote in a note Monday. Earlier this month, the bank raised its 12-month forecast for the yuan to 7 per dollar, from 7.35.
Yahoo
21-05-2025
- Business
- Yahoo
US Stocks to Power Global Rally, Morgan Stanley Strategists Say
(Bloomberg) -- US equities are likely to drive the global rally in the coming months on an improving corporate earnings outlook and a weaker dollar, according to cross-asset strategists at Morgan Stanley. Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt NJ Transit Makes Deal With Engineers, Ending Three-Day Strike The team led by Serena Tang turned overweight on US stocks and Treasuries, while remaining constructive on corporate credit. Equities will benefit from expected Federal Reserve interest rate cuts and lower odds of a recession, they said. 'TINA – 'there is no alternative' – remains a theme for now,' Tang wrote in a note dated May 20. US assets 'are – if not simply the best, nor better than all the rest – THE market which will attract the bulk of flows,' she said. The strategists pushed forward their year-end S&P 500 target of 6,500 points to mid-2026. While that's 9% higher than current levels, it implies gains for stocks are only likely to go so far. The estimate also matches the average 12-month price target issued by sell-side analysts. US stocks have rallied in recent weeks, reversing the 'Sell America' trade that gripped markets when President Donald Trump embarked on his trade war. The S&P 500 recouped its 2025 declines after Washington announced a temporary tariff truce with Beijing last week. Technology stocks are back in favor, pushing the tech-heavy Nasdaq 100 into so-called overbought territory. Other Wall Street strategists have also turned more optimistic on stocks as recession fears fade. Goldman Sachs Groups Inc. strategist David Kostin raised his 12-month target for the benchmark index to 6,500 earlier in May, although he warned that pricing was already looking optimistic given lingering uncertainties. The S&P 500 remains a laggard compared with international peers this year. The Morgan Stanley strategists said that while market volatility could remain high as trade negotiations progress, the risk-reward setup is likely to favor US stocks and stay neutral for Europe. The outlook for emerging markets and Japan is tilted to the downside, they said. The team sees range-bound Treasury yields until the final quarter of this year, when it expects investors to price in more US rate cuts for 2026. That's likely to push the 10-year yield down to 3.45% by the second quarter of next year, they said. Meanwhile, they see the dollar continuing to weaken as the economic growth premium relative to peers fades and the yield gap with other countries narrows. (Updates throughout) Why Apple Still Hasn't Cracked AI Anthropic Is Trying to Win the AI Race Without Losing Its Soul Inside the First Stargate AI Data Center Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp ©2025 Bloomberg L.P.
