Markaz: GCC markets give up gains affected by global growth and inflation concerns while oil remains strong

Markaz: GCC markets give up gains affected by global growth and inflation concerns while oil remains strong

The Central Bank of Kuwait increased its discount rate by 25 basis points during the month to 2% to curb soaring inflation. The move came on the back of U.S Fed’s 50 bps rate increase - its steepest hike in 22 years. Kuwait's Consumers Price Index (CPI) climbed by 4.36% y/y in March, with food and beverage prices rising the most at the rate of 7.18% y/y. Rating agency Moody’s has affirmed Kuwait’s credit rating at A1 with a stable outlook, opining that the country’s balance sheet and fiscal buffers would remain strong in the foreseeable future.

Regionally, S&P GCC composite index fell by 7.0% for the month. All GCC markets ended negative for the month. Dubai and Kuwait equity indices declined the most among GCC markets, falling 10.0% and 6.4% respectively over the month. Saudi Arabia declined by 5.9%. Among GCC sectors, while non-cyclical stocks gained the most for the month at 12.8%, telecom lost the most at 11.0%. Banking sector was down by 7.5% in May. Among GCC blue chip companies, the best performer was International Holding Company, which gained 28.3% during the month and 84.2% for the year due to strong earnings momentum and the company’s decision to