Markaz: GCC markets recover in July in line with global markets; Oil decline by 4.2%

Markaz: GCC markets recover in July in line with global markets; Oil decline by 4.2%

Kuwait: Kuwait Financial Centre “Markaz” recently released its Monthly Market Review report for the month of July 2022. Kuwait’s All Share Index marked a sharp recovery in July after last month’s loss, rising by 4.2%. Last week of July witnessed another 75 bps interest rate hike by the U.S. Federal Reserve, which was followed by hikes across various GCC countries. Oil prices declined by 4.2% for the month with downwards pressure on demand amid COVID-19 restrictions in China and strengthening the U.S. Dollar.

Among sectors, Boursa Kuwait’s Industrials and Financial Services sectors gained the most for the month at 7.4% and 4.8% respectively while Utilities and Healthcare sectors lost 3.4% and 2.9% respectively in the month. Among Premier Market stocks, Bahrain based Ahli United Bank and Jazeera Airways gained the most for the month, rising by 14.2% each. During the month, Kuwait Finance House general assembly approved the merger with Ahli United Bank after receiving approvals from both Central Bank of Kuwait and Central Bank of Bahrain. The deal valued around USD 11.6 billion would be one of the biggest cross-border mergers in the GCC region and a significant one for the region’s banking sector. The deal is subject to acceptance