Most stock market indices in the Gulf Cooperation Council (GCC) region ended last month on a positive note, spurred by higher energy prices.

The Gulf’s equity markets were also propped up by gains in blue chips, according to Kuwait Financial Centre’s (Markaz) monthly market review for June 2024.

Towards the end of June, crude oil prices surged to a record high in almost two months, supported by expectation of higher demand during the summer period. On Tuesday, US crude hit $84.38, the highest since April 26.

Big gainers

The S&P GCC composite index registered a gain of 2.5% for the month. Among the big gainers in June, the Qatar equity index rose by 7%, supported by strong non-oil economic activity and stable natural gas prices, while the Abu Dhabi equity index posted 2.2%, and Saudi Arabia and Dubai rose by 1.5% and 1.3%, respectively.

The Kuwaiti index dipped during the period despite recent positive economic data, although it remained positive on a year-to-date basis.

“Most of the GCC stock market indices were positive during the month supported by the rise in oil price and gains in blue chips,” the Markaz report noted.

In Saudi Arabia, the positive performance was supported by gains in banking stocks. The Saudi National Bank and Al Rajhi bank rose by 7.1% and 5.1%, respectively.

The gains in blue chips propped up the Dubai equity index last month. Emaar Properties gained 7% amid plans to invest $408 million on the expansion of Dubai Mall, while Emirates NBD gained 6.1%.

In Abu Dhabi, the month of June was favourable to major players in the real estate and banking sectors, with Aldar Properties gaining 13.8%, and First Abu Dhabi Bank scoring a 7.4% gain.

In Qatar, the real estate sector has also been upbeat over the past couple of months, with the number and value of transactions rising by 60% and 55%, respectively in May compared to April 2024.

(Writing by Cleofe Maceda; editing by Seban Scaria)
seban.scaria@lseg.com