Global and GCC equities continue their recovery in June

Global and GCC equities continue their recovery in June

Kuwait Financial Centre "Markaz“ recently released its Monthly Markets Review report for the month of June 2020. Markaz report stated that, GCC markets extend their recovery, registering gains for the third straight month in June. Undervalued Dubai equities topped gainers among the GCC while oil prices breached the USD 40/bbl. level.



Markaz report stated that Kuwait markets were positive, with the Kuwait All Share index registering gains of 2.7% in June. Relaxation of curfew regulations and the rebound in oil prices contributed to the positive sentiment of investors. Morgan Stanley Capital International (MSCI) announced that they would implement the reclassification of Kuwait indices from frontier market status to emerging market in November 2020 along with the semi-annual index review. Meanwhile, Kuwait cabinet agreed to cut the government entities' budget for fiscal year 2020-2021 by at least 20% to soften the deficit caused by COVID-19 outbreak. Agility was the top gainer for the month of June among Kuwaiti Blue Chips, gaining 11.2%. During the month, Agility signed a mega agreement with the Kuwaiti Public Authority for Housing Welfare (PAHW) to develop industrial and storage zones in Sabah Al Ahmed residential city. Basic materials and Industrials were the top performing sectors in Kuwait