Kuwait Stocks Extend World-Beating Rally Amid Mixed Gulf Markets

  • Main gauge in Kuwait at the highest level since February 2015
  • Saudi Arabian stocks reverse losses of as much as 0.9 percent

What's Driving the Gains in Kuwait Stocks?

Kuwaiti stocks advanced for a 13th day as trading jumped to the highest level in more than three years. Saudi Arabia’s main equity gauge rallied after the nation’s oil minister said output will remain below its OPEC commitment level.

Kuwait’s SE Price Index added 3.2 percent, the most since December 2014, bringing its gain this year to 16 percent,  the best performance among more than 90 gauges tracked by Bloomberg globally. With 880 million shares exchanged, volume was the highest in the Middle East.

The rally has been fueled by bets that the Capital Markets Authority and the local bourse will implement steps to boost inflows into an exchange where trading in most companies has lagged.

“Kuwait’s market is going through a revival moment, and there are several names in the that market that are looking attractive,” said Saleem Khokhar, the Abu Dhabi-based head of fund management and equities at the asset-management group of National Bank of Abu Dhabi PJSC, the United Arab Emirates’ second-biggest bank.

Click Here to Read More on Kuwaiti Stocks’ World Beating Rally

Saudi Arabia is producing less than 10 million barrels per day, energy minister Khalid Al-Falih said in Vienna on Sunday. Some oil producers will set mechanisms to monitor production cuts, he said, adding that global inventories will be reduced by 300,000 barrels per day by midyear.

  • Gulf Bank KSCP and Gulf Investment House KSC were up 9.8 percent.
  • Mobile Telecommunications Co., known as Zain Kuwait, added 4.3 percent to 0.490 Kuwaiti dinar, the highest close April 2015; Al-Khair National said media reports that the company was in talks with Adeptio to sell its stake in Zain were inaccurate.
  • "In Kuwait, the momentum is strong, and investors who are underweight the country will allocate to reduce the underweight," said Ali Adou, a money manager at the National Investor in Abu Dhabi.
  • Saudi Arabia’s Tadawul All Share Index dropped as much as 0.9 percent before closing 0.3 percent higher. “Investors are digesting earnings season, looking for long-term implications for companies and sectors,” Khokhar said.
    • The Savola Group retreated as much as 9.8 percent to 32.30 riyals, after it posted the first quarterly loss in eight years on impairments.
    • Samba Financial Group fell as much as 3.7 percent after fourth-quarter profit dropped 12 percent, missing estimates.
  • Bahrain’s BB All Share Index gained 1.6 percent, the most since December 2013; Ahli United Bank climbed 4.5 percent to have the biggest impact on the gauge
  • Abu Dhabi’s stock index fell 0.1 percent; Tel Aviv’s gauge dropped less than 0.1 percent 
    • The TA-25 Index’s 14-day relative strength index slipped below 30 on Jan. 19, a sign to some traders that shares are oversold.
    • Bank of Israel will probably leave interest rates at a record low of 0.1 percent on Jan. 23, according to all 17 analysts in a Bloomberg survey
  • Egypt’s EGX 30 Index declined 0.7 percent, with Commercial International Bank Egypt SAE dropping 0.6 percent to impact the index the most.
  • Main stock gauges in Qatar and Oman gained less than 0.5 percent; Dubai’s DFM General Index increased 0.7 percent.

— With assistance by Deena Kamel, and Sharon Wrobel

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