Markaz: Most of the GCC markets were positive in August despite a slide in oil prices

Markaz: Most of the GCC markets were positive in August despite a slide in oil prices

Kuwait: Kuwait Financial Centre “Markaz” recently released its Monthly Market Review report for the month of August 2022. Kuwait’s All Share Index marked a mild decline of 0.1% in August. Oil prices declined by 12.3% for the month with downwards pressure on demand, increasing fears of recession and uncertainty over a potential nuclear deal with Iran.

Among sectors, Oil & Gas and Insurance sectors gained the most for the month at 4.6% and 4.3% respectively while Technology and Healthcare sectors lost 14.8% and 6.4% respectively in the month. Among Premier Market stocks, Kuwait Projects Company Holding (KIPCO) and HumanSoft Holding Company gained the most for the month, rising by 5.9% and 4.9% respectively. National Investments Company and Kuwait Real Estate Company fell the most for the month at 11.4% and 8.1% respectively. KIPCO obtained CMA approval for capital increase, which is to be utilized towards executing the merger of KIPCO and Qurain Petrochemical Industries Company (QPIC).

Central Bank of Kuwait raised its discount rate by 25 bps to 2.75% in the month of August due to rising inflationary pressures. U.S. Fed Reserve Chair Jerome Powell restated that the U.S Central Bank will continue to raise its interest rates to fight the rising