Markaz: GCC Equities Start 2021 With Strong Performance Driven by Rising Investors’ Hopes of Economic Recovery

Press release

Published February 2nd, 2021 - 09:22 GMT

Markaz: GCC Equities Start 2021 With Strong Performance Driven by Rising Investors’ Hopes of Economic Recovery

Kuwait All Share index gained 4.2%, while its index PE ratio stood at 21.2, a premium of 43% compared to S&P GCC index. Market liquidity in January as indicated by the average daily traded value stood at USD 137million.

Highlights

The Kuwait equity market was the second best performing in the region.

Kuwait Financial Centre “Markaz” stated in its Monthly Markets Review report for the month of January 2021 that GCC equity market started the year on an optimistic note. Oil prices increased by 7.9% for the month. Investors cheered the rapid rollout of vaccines in UAE that would enable it to attain herd immunity swiftly. Furthermore, additional stimulus measures unveiled by Dubai Emirate to reverse the economic impact of COVID-19 pandemic rose investor hopes of quick recovery in economic activity.

The Kuwait equity market was the second best performing in the region. It unveiled its draft budget for the fiscal year starting April 01, 2021. It intends to boost spending by 6.9% in the coming fiscal year and forecasts narrower deficit of KD 12.1 billion, 13.8% lower than the deficit budgeted for the current fiscal year. Kuwait All Share index gained 4.2%, while its index PE ratio stood at 21.2, a premium of 43% compared to S&P GCC index. Market liquidity in January as indicated by the average daily traded value stood at USD 137million.

Background Information

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 1.03 billion as of 30 September 2020 (USD 3.33 billion). Markaz was listed on the Boursa Kuwait in 1997.