Kuwait’s main equity index led gains in the Gulf as banking shares including Kuwait Finance House KSCP and National Bank of Kuwait SAKP pushed it higher.
The Premier Market index of the biggest and most liquid shares in Kuwait rose as much as 1.3% on Sunday.
Index provider MSCI Inc.’s review of its benchmarks in November will be a driving factor for Kuwait’s stock market for the next two months, CI Capital Senior Analyst Sara Boutros said. Kuwait is on course for likely inclusion in MSCI’s emerging markets index.
Another catalyst is in Kuwait passing a debt law that would “help the government fund the budget deficit, while at the same time, possibly creating an interesting investment opportunity for the banks,” the CI Capital analyst said.
Read more: Kuwait Parliament Approves State Budget With $46 Billion Deficit
“Some banking stocks are trading at or close to their 10-year lows,” such as Gulf Bank and Burgan Bank, Boutros said. “These names are starting to attract some traction, given that they are laggards.”
Gauges in Abu Dhabi and Bahrain made gains while those in Dubai, Egypt and Qatar traded lower.
MIDDLE EASTERN MARKETS:
- Saudi’s Tadawul All Share Index little changed after rising as much as 0.5% earlier
- Aramco led gains
- Dubai Financial Market dropped 0.3% at 12 p.m.
- Emirates NBD -1.8%; Dubai Islamic Bank -0.9%; Dubai Investments -0.8%
- Egypt’s EGX30 fell as much as 0.9%, heading for its second daily decline
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