Kuwait equities lead GCC Markets on banking gains and energy deals

Kuwait Oil Company’s discovery of hydrocarbon resources at the Al Jlaiaa offshore field marks a significant milestone in Kuwait’s energy sector

Kuwait’s equities outperformed both global and GCC markets in January, driven by strong earnings expectations in the banking sector and heightened deal activity in the energy and real estate sectors. Most sectors ended the month in positive territory, according to Kuwait Financial Centre (Markaz).

The All-Share Index recorded a 5.7% monthly gain, leading GCC equity indices. Key sectors such as oil & gas, real estate, consumer discretionary, and banking saw robust growth, rising by 11.7%, 11.1%, 7.6%, and 7.3%, respectively, Markaz stated in its Monthly Market Review for January 2025.

Real Estate and Energy Sectors Surge

Among real estate stocks, Commercial Real Estate Co and Kuwait Real Estate Company were the top performers, with monthly gains of 33.1% and 28.9%, respectively.

Kuwait Real Estate Company launched the Tilal Al Tai project in Sharjah, valued at AED 3.5 billion ($1 billion), and secured approval from the Capital Markets Authority (CMA) to trade in treasury shares. Meanwhile, Commercial Real Estate Co qualified to bid for the Mubarakiya Market Development project and received approval to develop Salmiya Boulevard Park.

In the energy sector, Kuwait Oil Company announced the discovery of hydrocarbon resources at the Al Jlaiaa offshore field, marking a significant advancement for the industry. Additionally, Kuwait plans to consolidate its oil companies at the start of the 2025-26 fiscal year as part of a broader restructuring initiative.

Banking Stocks Drive Market Gains

Warba Bank and Burgan Bank emerged as the best-performing banking stocks, posting monthly returns of 22.9% and 17.6%, respectively.

GCC Market Performance

The S&P GCC Composite Index gained 3% in January, with all major GCC markets ending the month in positive territory.

• Saudi Arabia: The Tadawul index rose 3.1%, led by Saudi Telecom Company (+8.7%) and Etihad Etisalat Company (+8.4%). In contrast, Saudi Aramco declined 0.9% due to the delayed phase-out of OPEC+ production cuts.
• Abu Dhabi: The ADX index gained 1.8%, supported by strong banking sector performance. Abu Dhabi Commercial Bank surged 14.9%, buoyed by a 26% increase in 2024 net profits.
• Qatar & Dubai: Indices edged up 0.9% and 0.4%, respectively.
• Bahrain: The Bahrain index declined 5.4%, impacted by an 18.5% drop in Aluminum Bahrain (Alba) stock following the termination of its proposed deal with Saudi Arabian Mining Company (Ma’aden).