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By Economy Middle East
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April 5, 2022 10:05 am

Oil surge propels GCC markets even higher

S&P GCC index rose by 4.8 percent
oil index
oil price surge

Kuwait Financial Centre (Markaz) recently released its Monthly Market Review report for the month of March 2022. The report shows that Kuwait’s all share index gained 6.7 percent in the month of March.

The rise in oil prices prompted the increase. Oil prices, which were a major driving factor for the GCC stock market performance, crossed $120 per barrel mark in the month of March.

Among sectors, Boursa Kuwait’s Banking sector was the top gainer, rising 9.9 percent.

The Banking sector was followed by the financial services sector at 5.3 percent.

On the other hand, the Healthcare sector had the biggest decline in the month.

Similarly, the Energy sector index declined, falling 5.3 percent.

Among Premier Market stocks, National Investments Company and Boursa Kuwait were the top gainers during the month, rising 23.7 percent and 14.3 percent respectively.

Regionally, S&P GCC composite index rose by 4.8 percent for the month, driven by upward oil price momentum.

Moreover, all GCC markets gained for the month.

Abu Dhabi and Bahrain equity indices were the biggest gainers in the GCC, rising 6.8 percent and 5.6 percent respectively over the month. Qatar, Saudi Arabia and Oman equity indices also marked a gain of 4.5 percent, 4.0 percent and 3.7 percent respectively over the month.

Among the GCC blue chip companies, the best performer was First Abu Dhabi Bank, which gained 14.6 percent during the month.

Furthermore, due to a sharp increase in oil prices and robust domestic demand, Saudi Arabia’s real GDP increased by 6.7 percent year on year in Q4 2021.

S&P upgraded Saudi Arabia’s outlook from stable to positive, as it expects improved gross domestic product (GDP) growth and fiscal dynamics in the medium term, improved oil sector prospects and the Government’s reform programs.