Saudi Arabia: Gulf Cooperation Council equities recorded their second consecutive monthly gain in October as the MSCI GCC index rose by 1.2 percent, reflecting stronger regional sentiment amid policy easing and global market resilience.  

A report by Kamco Invest said the advance was led by broad-based sectoral gains and a rebound in investor confidence toward the end of the month.  

The improvement followed interest rate cuts by most GCC central banks, excluding Kuwait, as well as a pick-up in trading activity and renewed optimism in key markets.  

Regional performance, however, remained mixed, with Oman, Bahrain and Dubai advancing while Qatar extended its losing streak.  

The GCC’s equity gains in October align with broader regional optimism reflected in recent outlooks from major research houses.  

Fitch Ratings’ GCC Cross-Sector Outlook report, published in February, maintained a neutral stance for non-financial issuers but underscored the region’s resilient fundamentals and investment momentum supported by stable oil prices and sustained capital spending.  

The economic environment also remains robust, with separate projections indicating that GCC economies are set to expand by 4.4 percent in 2025, driven largely by non-oil sector growth.   

These assessments support Kamco Invest’s findings, indicating that continued policy support, diversification initiatives, and stable corporate performance across the Gulf are underpinning the region’s sustained market resilience. 

In its latest report, Kamco Invest stated: “The gains reflected progress on trade and tariff talks between US and its trading partners that continued until the end of the month as well as speculations over rates cut that was implemented at the close of the month with the US Fed and the rest of the GCC central banks, barring Kuwait, lowering policy rates by 25 bps (basis points).”  

Oman led the region with an 8.3 percent monthly gain, followed by Bahrain at 5.9 percent and Dubai at 3.8 percent.  

Qatar was the only market to decline, slipping 0.9 percent amid weakness in large-cap stocks. 

Across the year to date, Oman’s steady rally lifted its gain to 22.6 percent, while Boursa Kuwait retained the top position with a 22.7 percent rise.  

Large-cap sectors such as banking, energy, telecommunications and real estate outperformed in October, outweighing losses in a few smaller categories.  

Kamco Invest said diversified financials led with a 6.6 percent increase, followed by retailing at 6.4 percent and utilities at 4.8 percent. Energy climbed 3.8 percent, and banks added 0.7 percent. 

On the downside, consumer durables and apparel fell 10.7 percent, while hotels, restaurants and leisure declined 2.2 percent, and food and drug retailing eased 1.2 percent.  

In Kuwait, mid- and small-cap stocks drove gains, lifting the All-Share Index by 2.7 percent to 9,031.9 points, breaching the psychological mark of 9,000 points, the report said.  

Monthly trading volumes surged by nearly 52 percent to 16.2 billion shares, while traded value rose 43.5 percent to 3.3 billion Kuwaiti dinars ($10.74 billion), the highest monthly level on record.  

Saudi Arabia’s Tadawul All Share Index added 1.3 percent in October, trimming its year-to-date loss to 3.2 percent.  

Utilities led with a 10.9 percent rise, supported by consumer discretionary and energy stocks. 

Banking shares slipped 0.6 percent as investors assessed the potential impact of expanded foreign ownership rules. 

Kamco Invest highlighted that “Saudi Aramco completed the acquisition of 375.97 million ordinary shares in Rabigh Refining and Petrochemical Co. representing about 22.5 percent of its capital,” while ACWA Power, Badeel and Aramco “signed financing agreements for five solar energy projects with a target combined capacity of 12,000 megawatts.”  

In the UAE, Abu Dhabi’s FTSE ADX gained 0.9 percent and Dubai’s DFM rose 3.8 percent, pushing the latter’s year-to-date performance to 17.5 percent.  

Qatar’s market fell for a third straight month, with real estate stocks down 4.1 percent and trading activity at its lowest since December 2024, as the value of traded shares fell 22.9 percent to 7.1 billion Qatari riyals ($1.9 billion).  

Bahrain ranked as the region’s second-best performer in October with a 5.9 percent increase to 2,062.9 points, driven by a 22.2 percent jump in materials and broad gains across financials.  

Oman also extended its rally for a fourth consecutive month, led by a 9 percent rise in services and an 8.3 percent gain in financials.