15 companies face challenge of closing their losses by 2024

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KUWAIT CITY, Jan 4: Small shareholders are eagerly anticipating the plans that will rejuvenate their investments in a list of 15 companies listed on the Kuwait Stock Exchange, set to unveil their 2023 results, reports Al-Rai daily. 

Among them, 13 small and medium enterprises (SMEs) have reported losses ranging from 50 to 75 percent, while two companies incurred losses exceeding 75 percent of their capital.

Small shareholders are eagerly awaiting transparent disclosures about the conditions and strategic plans of these companies during the last three months of the previous year. All 15 companies are listed on the main market.

These companies have the right to implement capitalization plans, which may involve capital reduction or increase and steps leading to the entry of new shareholders with shares in exchange for cash or debts. This process aims to move the companies to a more stable stage.

Once the 2023 financial statements are approved by auditors and regulatory authorities in the coming weeks, preparations for the annual general assemblies will commence. It is expected that the companies will present plans to address their losses, subject to approval by the board of directors and general assembly.

The list of companies grappling with losses includes three in the financial services sector, five in real estate, three in industry, and one each in the consumer goods, insurance, and healthcare sectors. Some of these companies possess financial capabilities sufficient to overcome their losses.

Small shareholders are hoping for positive developments that could enable their companies to overcome crises, leading to cash distribution and free grants, similar to other successful companies. Companies are focusing on maximizing shareholder rights and compensating for missed opportunities due to ownership entanglements in listed stocks. The daily trading scene on the stock exchange is expected to be optimally exploited to overcome any decline in asset value.

In terms of trading activity, the stock exchange closed the second session of the new year with a collective rise in indicators for the second consecutive day. This positive trend is supported by purchases of selected stocks in the primary and main markets.

The financial community is optimistic about the current pace and the future of daily transactions, especially following a series of losses incurred by portfolios, funds, and individuals.

The market witnessed active trading, with the general index closing higher, trading volume reaching 209.308 million shares, and a total value of 50.8 million dinars, executed through 12,035 cash transactions. The primary and main markets achieved gains, reflecting a positive sentiment among investors.

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