DUBAI: Kuwait’s equity market sustained its upward momentum in August as Kuwait All Share index rose 3.1 percent for the month and 22.4 percent for the year, according to Kuwait Financial Centre, Markaz.
In its Monthly Market Review report for August, Markaz said the market liquidity in August, as indicated by the average daily traded value, stood at about $201 million, an increase of 29 percent compared to the previous month.
The price to earnings ratio stood at 20.9. Among Kuwait sectors, consumer goods was the top gainer, rising 5.3 percent followed by banks at 4.0 percent, while consumer services and oil and gas declined by 4.1 percent and 3.8 percent respectively for the month.
Among blue chips, Kuwait Finance House was the top gainer for the month of August, gaining 5.2 percent, while Boubyan Bank lost 2.1 percent.
Kuwait Finance House has posted a net profit of KD 52 million for Q2 2021, nearly thrice that of Q2 2020, owing to decline in provisions. It also plans to finance projects in Saudi Arabia, including the NEOM business zone, the Markaz report said.
Regionally, S&P GCC composite index gained 3.6 percent in August. All GCC markets, except Oman, were positive for the month. Abu Dhabi and Dubai were top gainers for the month, each increasing by 5.0 percent.
Saudi Arabia, Qatar and Bahrain gained 2.8 percent, 3.2 percent and 3.0 percent respectively in August. Oman declined by 1.6 percent for the month. While factors such as strong earnings season in the region and increase in foreign ownership limits of major banks by Qatar supported the markets, low oil prices and global spread of COVID-19 Delta variant stunted gains.
Among the GCC blue chip companies, International Holdings Company (IHC) continued its winning streak, gaining 10.9 percent for the month and 250 percent for the year. The company’s net profit has increased by 309 percent in Q2 2021 to AED 2.87 billion due to strategic acquisitions. It has completed the listing of its subsidiary, Al Seer Marine, the sixth IHC subsidiary to be listed in less than eight months.