(MENAFN- TRACCS) Kuwait, 03 November 2025: Kuwait Financial Centre “Markaz” released its Monthly Market Review report for October 2025. Kuwait equity market was positive in October 2025 amid favorable economic developments and an optimistic outlook on capital spending. Kuwait All Share Index continues to be the top-performing GCC market on YTD basis with a gain of 22.7%, supported by a 2.7% rise in October. Among sectors, oil and gas, and financial services were the top gainers, rising by 11.0% and 10.8% respectively. The banking sector index gained by 0.7% for the month. Among banking stocks, Commercial Bank of Kuwait was the top gainer, increasing by 11.4% during the month. The bank has announced 15.3% y/y increase in net profit for Q3 2025. The bank has also disclosed execution of off-market trades on about 4.8 million shares, at price of KD 0.6 per share, in October 2025. Among Premier Market stocks, GFH Financial Group and National Investments Co were the top gainers, rising 27.7% and 25.5% respectively during the month. GFH Financial Group received approval from Central Bank of Bahrain to repurchase treasury shares up to a maximum of 10% of its total issued shares and commenced to do so towards the end of the month.

Central Bank of Kuwait (CBK) has maintained its discount rate at 3.75%, despite the U.S Fed’s rate cut of 25 bps in October 2025. Kuwait’s real GDP grew by 1.7% y/y in Q2 2025, supported by expansion in both oil and non-oil sectors. Following the passage of public debt law in April 2025, Kuwait issued bonds worth USD 11.25 billion in October 2025. The issuance was 2.5 times oversubscribed with the order book peaking at USD 28 billion. Kuwait has discovered new offshore natural gas field named Jazza that is estimated to hold about 1 trillion cubic feet of gas and over 120 million barrels of condensate crude. A new Emiri decree has been issued allowing listed companies with non-Kuwaiti shareholders, real estate funds, and investment portfolios to own property, provided the companies are listed on bourses, trade in property, and exclude private residential land. Capital expenditure on development projects in Kuwait has increased by 2.4 times on annual basis to KD 132 million in Q1 of FY2025-26. The bond issuance and increase in capital expenditure in Q1 2025 offer cause for optimism over further improvement in government capital spending.

All GCC equity indices, except Qatar, ended the month on a positive note with S&P GCC composite index registering a gain of 1.5%. The de-escalation of geopolitical tensions, a good start to the 9M earnings season and interest rate reductions in the U.S supported investor sentiment. Saudi Arabia’s equity index registered a monthly gain of 1.3% supported by the positive performance of major blue-chip stocks. ACWA Power increased by 12.9% during the month following reports that the company has boosted its project portfolio to USD 115 billion with 110 projects across countries. Saudi Aramco has gained by 5.2% during the month in anticipation of positive earnings results for Q3 2025, which are likely to be announced on November 4th,2025. Abu Dhabi’s equity index increased by 0.9% in October 2025 supported by major blue-chip stocks. First Abu Dhabi Bank gained 11.5% after recording a 24% rise in net profit for 9M 2025. Dubai equity index increased by 3.8% during the month, supported by real estate stocks and few banking blue-chips. Emaar Properties rose 8.8% during the month amid launch of AED 100 billion masterplan with 40,000 luxury homes in Dubai and the company chairman’s remarks that the company plans to enter the U.S. markets in the future. Emirates NBD rose by 15.6% as the bank’s net profits grew by 12% y/y in 9M 2025. The bank entered into a definitive agreement to secure a majority stake in India’s RBL Bank for USD 3 billion. Qatar equity index declined by 0.9% amid mixed corporate earnings releases.

UAE’s real GDP is expected to expand by 4.8% in 2025, with growth accelerating to 5.0% in 2026, supported by service sectors such as tourism, financial services, and real estate, according to the IMF’s Regional Economic Outlook - October 2025. Saudi Arabia’s mortgage portfolio surpassed USD 240 billion in YTD-October 2025, owing to accelerating real estate transformation amid Vision 2030 initiatives.

Global markets were positive during the month despite the U.S government shutdown, supported by the easing of trade tensions between U.S and China, and a rate cut amid softer-than-expected September inflation data. MSCI World and S&P 500 rose by 1.9% and 2.3% respectively during the month. Headline inflation in U.S. increased to 3.0% y/y in September 2025 from 2.9% y/y in August but was below the Bloomberg consensus estimate of 3.1%. Following the meeting between the U.S and Chinese Presidents, the U.S has agreed to lower tariffs on Chinese imports to 47%, from 57%, and China has agreed to pause export controls on rare earths. The countries have also agreed to work on issues around TikTok. Nasdaq Composite index rose 4.7% during the month buoyed by ongoing enthusiasm for companies with AI exposure. The U.S federal government offices shut down on October 1, 2025, because Congress failed to pass the necessary appropriations legislation to fund the government for FY 2026. Non-essential government operations were halted or reduced while essential services like Medicare continue. The shutdown has delayed reports on key economic data, including monthly jobs and inflation reports, which are watched by the Fed officials. MSCI EM index gained 4.1% during the month, with the Indian stock market gaining 4.6% . The U.S-China trade negotiations and the strength in tech stocks despite persistent deflationary pressures supported Chinese stock markets.

The yield on the 10-year US treasury notes declined by 5 bps during the month to 4.11%. While the U.S government shutdown and expectation of rate cut by U.S Fed in its October meeting contributed to the fall in the treasury yields for most part of the month, U.S Fed Chair’s hawkish outlook on further rate cuts in the Fed meeting led to some pick up in yields towards the end of the month. In line with expectations, U.S Fed lowered rates by 25 bps in October 2025. While acknowledging the weakness in labor market, the Fed Chair also highlighted the risk in making further decisions on policy rate changes, given the absence of data due to government shutdown.

Oil (Brent) prices closed the month at USD 65.07 per barrel, declining by 2.9% during the month. The continued unwinding of OPEC+ oil production cuts and easing of geopolitical tensions in the Middle East weighed on oil prices. IEA expects the oil market to be oversupplied with a surplus of 4 million bpd. U.S. President Donald Trump's decision to impose Ukraine-related sanctions on Russia targeting major oil companies Lukoi and Rosneft, which raised supply concerns and lent some support to oil prices during the month.

Delay in publication of U.S economic data owing to the federal government shutdown and difference of opinion among U.S Fed policy makers have increased uncertainty around further rate cut in December 2025. This could lead to higher volatility in markets. Resumption in U.S government operations, corporate earnings, especially M7, and directions on interest rate trajectory from Fed officials could drive market sentiment in the next month. The GCC market movements might hinge on corporate earnings and pace of OPEC+ oil production increase.

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