Kuwait Financial Centre “Markaz” released its Monthly Market Review report for the month of January 2024. Kuwait equity index recorded a positive start to the year and was the top gainer among GCC markets in January 2024. GCC equity indices were mixed during the month as the possibility of early rate cuts by the U.S. Fed reduced due to strong Q4 2023 real-GDP growth in the U.S.Kuwait market has rebounded after a decline in 2023. The formation of a new Kuwaiti cabinet, pickup of non-oil activity and projections of rate cuts by U.S Fed in 2024, mainly in the second half of the year buoyed investor sentiment. Kuwait All Share index rose 6.6% in January, supported by broad based gains in all the sectors. Banking stocks recorded a 6.6% increase during the month. NBK and KFH, the two large banks in terms of market capitalization, registered monthly total returns of 9.6% and 6.3% respectively on anticipation of a positive earnings announcement. Among Premier Market stocks, Kuwait Investment Company and Boursa Kuwait Securities Company gained the most, recording total returns of 49.6% and 17.7% respectively. Kuwait Investment Company’s stock price moved owing to some large block trades during the month without any material disclosures from the company. Kuwait’s CPI accelerated to 3.37% y/y in December 2023, driven by 6.72% y/y increase in the cost of clothing and footwear. Kuwait’s consumer spending growth (measured by card transaction data) eased to 5.4% y/y (0.5% q/q) in Q4 2023 from 8.7% in Q3. Spending grew 8.6% y/y in 2023, normalizing from the post-pandemic surge of 21.7% in 2022. Kuwait’s budget deficit in the fiscal year 2024/2025 is expected to hit KD 5.89 billion (USD 19.15 billion), down 13.5% on y/y basis based on the oil price assumption of USD 70/bbl. Kuwait real estate sales rose 13.6% q/q to KD 771 million in Q4 2023. Robust investment and commercial sector activity and a less marked decline in residential sector sales supported the real estate performance. However, on a y/y basis real estate sales dropped by 22% in 2023 to KD 2.8 billion in 2023 owing to higher interest rates and residential valuations. (ICE KUWAIT)

Fonte notizia: ARAB TIMES