"The Center": Kuwaiti stocks outperform their Gulf counterparts

The Kuwait Financial Center (Markaz) clarified in its monthly report on market performance for July 2026 that Kuwaiti markets surpassed a three-month decline, recording a marginal increase supported by strong corporate earnings results, despite the downturn in most Gulf markets during the month. The General Market Index rose by 0.6%, driven by gains in the First Market Index, which increased by 1.5%. Bank stocks led market performance during the month, posting gains of 3.1%, bolstered by strong profits recorded by the sector.

Shares of National Bank of Kuwait and Kuwait Finance House rose by 6.5% and 2.3%, respectively, after the two banks announced positive results for the first half of 2026. Net profits of the National Bank of Kuwait increased by 3% year-on-year during the first half of the year, while profits of Kuwait Finance House rose by 6.1%, despite geopolitical challenges in the region and the resulting economic pressures.

Among First Market stocks, Trolley for General Trading shares rose by 7.5% during the month, following the company’s announcement of positive business results for the second quarter, supported by revenue growth due to increased store productivity, branch network expansion, and strong consumer demand.

The report noted that Gulf markets generally posted negative performance in July, with the S&P Composite Gulf Index declining by 1.5%, influenced by geopolitical tensions in the Middle East, including attacks targeting key infrastructure facilities in Kuwait and Bahrain, which prompted investors to exercise caution in trading. Conversely, the strong start of the corporate earnings announcement season helped limit market losses.

The Saudi Tadawul Index fell by 1.9%, affected by the negative performance of several leading stocks. The Dubai Financial Market Index declined by 2.7%, amid geopolitical escalation that triggered a broad wave of selling in real estate sector shares, amid concerns over a drop in foreign demand.

In contrast, Abu Dhabi Securities Exchange shares ended July trading with a 1.1% gain, supported by strong banking sector results. First Abu Dhabi Bank and Abu Dhabi Commercial Bank shares rose by 12.4% and 3.6%, respectively, during the month.