Bearbull Private Banking Benchmark Kuwait - June 2026

24 Aug

Bearbull Private Banking Benchmark Kuwait – June 2026

Posted by BearBull Group In Bearbull Multi Asset indices 0 comment

A setback after a strong start

Indices Performances

June YTD

Bearbull Kuwait Pension Strategy « Low Risk » -0.88% +2.84%

Bearbull Kuwait Pension Strategy « Moderate Risk » –1.40% +3.75%

Bearbull Kuwait Pension Strategy « Dynamic Risk » -1.91% +4.65%

Monthly Comments (performances in AED)

The Bearbull Private Banking Kuwait indices ended the month in negative territory. The low-risk index fell by -0.88%, while the moderate-risk strategy also declined, falling by -1.40%, as did the dynamic-risk approach (-1.91%). Since the beginning of the year, cumulative performances have remained favorable (+2.84%, +3.75%, and +4.65%, respectively). The divergence was also evident in the bond markets in June. The domestic segment advanced by +0.42%, while international bonds declined by -0.71%. Never-theless, in cumulative terms, both asset classes posted contrasting performances (+0.39% and -0.21% respectively). The equity markets ended the month in negative territory. The Kuwaiti market declined by -2.87%, followed by the international segment, which recorded a more modest -0.72% decrease. Since January, domestic and international equities have posted diverging cumulative performances (-3.43% and +9.69% respectively). The domestic real estate segment declined in June (-0.97%), while the international segment posted a solid performance of +0.46%. Since the beginning of the year, international real estate has continued to outperform the Kuwaiti segment, posting a cumulative gain of +8.82% against +0.57%. Commodities ended June down sharply (-9.86%), while maintaining a remarkable cumulative performance of +24.09%, supported by the strong performance of gold. Private equity recorded the weakest performance of the month (-5.37%), with a negative annual performance (-18.14%).

Financial market developments (performances in AED)

The passage into the month of June confirms the entrenchment of a global stagflation dynamic that is profoundly altering investors’ perception of risk. While the memorandum of understanding in the Middle East had raised hopes of an immediate positive impact on inflationary risks, economic data and central bank actions raising concerns about risks have reawakened volatility. Market sentiment, until recently immunized by a form of indifference toward geopolitical risks, has shifted into a phase of doubt. The supply shock affecting energy and agricultural commodities is finally beginning to visibly impact corporate profit margins and household purchasing power. Central banks, confronted with consumer price indices that refuse to converge toward their 2% targets, are hardening their tone, forcing a recalibration of asset allocations. The past resilience of equity indices, largely driven by the speculative waves in technology and artificial intelligence, is now being severely tested by the general and mechanical rise in risk premia demanded by investors. The current financial environment is also characterized by a marked deterioration in quantitative risk indicators. While May still showed residual complacency, June marks an inflection point where macroeconomic reality asserts itself. The performance of global equity indices is losing momentum in the face of rising interest rates and the new restrictive positioning of central banks, while international real estate shows highly divergent trajectories depending on the geo-graphic region, reflecting increased stress in the credit segment. Bond markets are now capturing the persistence of inflationary pressures much more adequately, definitively eliminating hopes of a short-term rate cut and readjusting yields upward (the performance of international bonds adjusting to -0.71% in June versus +0.34% in May). Our global risk scores for the equity segment have crossed critical thresholds, validating the need to adopt a defensive wealth management strategy with a high degree of selectivity.

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