Long-term investors prefer to invest in mid-term shares
KUWAIT CITY, Dec 11: The Al-Rai newspaper has recorded the best performing companies in terms of market gains since the beginning of the year and until now, with the most commodities losing over 11 months, and finally those gaining the most liquidity in terms of the total trading of about 176 listed companies, reports the daily.
The result of monitoring is quite different. The SME segment was the most prominent during the last period, confirming that the trend of the investment circles towards popular stocks is still present, although the figure has changed relatively in the absence of speculations.
According to investment managers in big establishments, “Long-term investors prefer to pump their money into mid-term operational shares to speculate and enter into reckless adventures.” With the disappearance of hot liquidity that has affected the course of trading, many market players tend to invest in medium or long term basis, without fully opting out of the market.
They continued, “Traders preferred to invest in stocks, though they declined somewhat instead of putting their money in for a small benefit that did not meet their needs, pointing out that the current yield from annual distributions still outperformed deposits.” Sources pointed out that the most active or rising stocks since the beginning of the year achieved gains, most of which were ‘Al-Madar Investment’ by 517 percent, ‘Syrian Holding’ by 47.2 percent and ‘Al-Kout Industrial Projects’, which rose by 40 percent. Nine companies, most of them heavy operational stocks, accounted for most of the market liquidity of 2.3 billion dinars out of 2.66 billion traded in the three markets (the first, the main and the auctions).
KFH came in the forefront of entities that acquired liquidity amounting to KD 560.5 mln, or more than $ 3.2 bln, followed by the National Bank with a value of KD 523.2 mln, then Zain KD 326 mln and Al-Ahli United KD 205.8 mln, Agility KD 1886.8 mln, Gulf Bank with KD 174.9 mln, the Kuwait International Bank with KD 116.9 mln, Human Soft with KD 102.1mln and Boubyan Bank with KD 96 mln. On the list of companies that were losers, the list included a range of commodities, including IFA Hotels by 60 percent, RIM by 57.7 percent and Boubyan Holding by 48 percent, Danah Al-Safat Foodstuff Company 45 percent, Wethaq Insurance 40 percent, Agwan Real Estate 38.3 percent, and Al Madina 38 percent. Observers commented on the nature of the opportunities available on the stock exchange.
“There are different criteria for reading the opportunities, which are led by the current yield and the market price rates to the earnings per share, in addition to the market price to the book value,” pointing out that there are other data controlling the turnout of the share, daily trading rates and the possibility of exiting after the formation of centers, and these data are available in dozens of shares registered in the market.