Markaz: GCC markets down in June due to aggressive US Fed tightening; Oil down by 6.5%

Markaz: GCC markets down in June due to aggressive US Fed tightening; Oil down by 6.5%

Kuwait: Kuwait Financial Centre “Markaz” recently released its Monthly Market Review report for the month of June 2022. Kuwait’s All Share Index fell by 5.3% in the month of June as negativity in global markets caught up to the GCC region. The risk off sentiment among investors due to global economic growth concerns amid inflation and monetary policy tightening impacted Kuwait equities. Oil prices were down by 6.5% for the month with downwards pressure on demand amid weaker economic outlook.

Among sectors, Boursa Kuwait’s Consumer Staples and Basic Materials declined the most for the month at 19.1% and 16% respectively. Almost all the sectors ended negative this month except for Technology and Insurance, which remained positive with an increase of 4.3% and 2.6% respectively. Among Premier Market stocks, Mezzan Holding and Gulf Cable and Electricals fell most for the month, declining 19.4% and 17.7% respectively. Mezzan Holding’s shares fell after the company reported a 39.5% y/y decline in their operating profit in Q1’2022 due to rising input costs. Jazeera Airways increased at the end of month on the back of new services and routes added in Europe and increased forecasted pilgrimage demand for the annual hajj rituals starting next month.

Central Bank