Equity markets in the Gulf Cooperation Council (GCC) countries showed strong growth in January, with Kuwait and Saudi Arabia emerging as top performers, according to a recent report from Kuwait Financial Center (Markaz).

The S&P GCC Composite Index increased by 3 percent during the month, driven by notable gains in Kuwait and Saudi Arabia’s stock markets.

Kuwait’s All Share Index rose by 5.7 percent, while Saudi Arabia’s market saw a 3.1 percent increase.

This performance outpaced the S&P 500, which grew by 2.7 percent, and the MSCI Emerging Markets Index, which posted a 1.7 percent rise.

Kuwait’s equity markets particularly outperformed expectations due to strong earnings forecasts for banking stocks and a rise in energy and real estate sector activities.

While most sectors performed well, Bahrain’s market declined by 5.4 percent, largely due to a significant drop in Aluminum Bahrain's stock after a deal with Saudi Arabian Mining Co. was canceled.

Other GCC markets showed mixed results, with Abu Dhabi’s index rising by 1.8 percent, Dubai’s by 0.4 percent, and Qatar’s by 0.9 percent.

The report also noted that Saudi Telecom Company was the top performer in Saudi Arabia’s stock market, with a rise of 8.7 percent, while the price of oil saw a modest increase of 2.8 percent, closing at $76.8 per barrel.

Gold prices surged by 6.8 percent, closing the month at $2,759.3 per ounce.

The report highlighted that geopolitical factors, including US trade policies, could shape the performance of global asset classes in the coming months, potentially influencing oil prices and GCC market dynamics.