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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@
Zawya
19-05-2025
- Business
- Zawya
Major Gulf real estate firms rush to Kuwaiti market
KUWAIT CITY - Less than two weeks after the Council of Ministers approved a draft decree-law for amending certain provisions of Law No. 118/2023 regarding the establishment of companies to create, and economically develop cities or residential areas, also known as the 'Real Estate Developer Law', sources revealed that major Gulf real estate development companies are rushing into the Kuwaiti market to seize the opportunities presented by the new law. They explained that some companies have already started studying the Kuwaiti market to assess available opportunities and the economic feasibility of entering the market. Meanwhile, several companies have already entered Kuwait, and have begun recruiting and building their organizational and legal structures to conduct operations. Among the companies entering the local market is a Saudi company (unnamed by the sources) listed on the Saudi Stock Exchange. The sources confirmed that the total construction area developed by the company in Saudi Arabia exceeds 6 million square meters, in addition to a total of 18,000 housing units, some of which are still under construction. They believe that the development of real estate and housing legislation in Kuwait, the government's commitment to reducing citizens' waiting time for housing, and the involvement of the private sector in resolving the housing issue have all paved the way for many real estate companies to enter the Kuwaiti market. The sources emphasized that this will create real and intense competition, which will positively impact the quality and prices of housing units, as well as the services provided to citizens.
