Markaz: GCC and global markets rise on back of cooling inflation

Markaz: GCC and global markets rise on back of cooling inflation

Kuwait: Kuwait Financial Centre “Markaz” recently released its Monthly Market Review report for the month of January 2023. Kuwait’s All Share Index witnessed a marginal decrease in January, posting a monthly loss of 0.2%. Among Boursa Kuwait’s sectoral indices, Telecommunications and Banking sectors gained the most at 1.4% and 1.1% respectively, while the Industrials sector lost 9.2% for the month. Among Premier Market stocks, ALAFCO and Kuwait International Bank gained the most for the month, rising by 5.4% and 3.6% respectively. Agility and Jazeera Airways fell the most for the month at 17.9% and 14.7% respectively.

Central Bank of Kuwait raised its policy rate by 50 bps from 3.5% to 4.0% in January, a few days ahead of the scheduled monthly meeting of the U.S. Fed. According to forecasts by the United Nations, Kuwait’s real GDP is expected to grow at 2.8% while the country’s inflation is estimated at 3.2% in 2023. Kuwait’s inflation (CPI) eased in the month of December to 3.15% y/y, which was mildly lower compared to November at 3.18% y/y. Fitch has affirmed a stable outlook on Kuwait with a credit rating of AA-, citing exceptionally robust fiscal and external balance.

Regionally, GCC Markets were mixed with S&P