Deputy Head of Investment Portfolio Management at National Investments, Amr Sarhan, said: Jazeera Airways’ purchase of Airbus aircraft It will not have an impact at the present time, but its impact will appear in the long term.
Sarhan added that the purchase process depends on a study carried out by the company, which determined the expected cash flows from the deal.
He expected that travel restrictions would ease, and we might witness the end of the Corona pandemic this year, and thus it would reflect positively on the performance of Jazeera Airways.
The board of directors of Jazeera Airways, which is listed on the Kuwait Stock Exchange, approved the purchase of 28 aircraft from Airbus, at a value of $3.4 billion (1.03 billion Kuwaiti dinars).
The company said in a statement to the Kuwait Stock Exchange today, Sunday, that the board of directors approved the purchase of 20 A320neo aircraft, and 8 A321neo aircraft.
As for the performance of the Kuwaiti market index, Sarhan stated that the index is high by 4%, and this is a good performance for the market, and the levels of liquidity are excellent, ranging between 30 to 50 million dinars per day.
He indicated that the market will interact positively with the continuation of profit announcements, especially from listed banks and leading companies.
Sarhan added that the banking sector will be the first beneficiary of the US interest rate hike.
Sarhan said: “The Central Bank of Kuwait has flexibility in dealing with the Fed’s policies in most cases… For example, if the Fed raises interest rates 6 or 7 times during the year, the Central Bank of Kuwait can raise it only 3 times.”
Sarhan expected that there would be no effect of raising interest rates on operating companies, noting that interest is currently at low levels, and if it rose a quarter of a percent, it would not have a significant impact on borrowing costs.
