Middle East markets show divergence in Egypt and Kuwait

Financial markets in Egypt and Kuwait showed varied performance recently. In Egypt, the EGX30 ended a volatile week nearly flat, up just 0.02% for the week, as the market shifted from a record rally toward rotation and consolidation. While large-cap stocks saw weakness, smaller stocks outperformed, with the EGX70 and EGX100 recording modest gains. International capital showed a preference for Egyptian sovereign debt over equities, resulting in net foreign equity sales of approximately EGP 1.04bn.

In Kuwait, the stock exchange saw a 1.07% increase in market capitalization, reaching 53.5 billion dinars, driven by selective buying in small- and mid-cap companies and banking stocks. Meanwhile, the Kuwaiti real estate market demonstrated resilience despite regional instability. Between March and September, the market recorded 2,541 deals valued at 1.64 billion dinars. The private housing sector remained the largest segment, accounting for 727.3 million dinars of the total value, even as transaction activity in that sector declined by roughly 30% due to regulatory changes and market uncertainty.