Boursa Kuwait hits 40 bln dinars market value

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KUWAIT CITY, Dec 13: The Boursa Kuwait has once again soared in its market value to exceed 40 billion dinars, after achieving market gains of about 755 million dinars in just the last 10 sessions, since the beginning of December trading until yesterday’s session, which saw continuous increases in the circulating liquidity, reports Al-Anba daily. The daily added the stock market indices witnessed continued positivity, as the Premier Market Index broke the level of 7,300 points upwards during the current December trading, and reached the level of 7,425 points, a jump that indicates the possibility of continued rises led by the Premier Market. The surge in the stock market’s gains can be attributed to seven key factors that have significantly influenced trading activities:

■ Changing Foreign Investment Trends: Foreign investors have shifted their focus from international markets to Boursa Kuwait, particularly targeting high-liquidity banking stocks. This shift is evident in the increased foreign ownership in the primary market, reaching approximately 4.8 billion dinars, marking a notable increase of 100 million dinars.
■ Funds’ Positive Performance: The performance of funds experienced a remarkable upturn at the end of last November. This was propelled by institutional purchases in selected portfolios and stocks, contributing positively to the overall market performance. Traditional funds saw gains ranging from 1.76% to 3.5%, while Islamic investment funds registered gains between 0.47% and 3.1%.
■ Year-End Dynamics: December typically witnesses shifts in investment positions based on technical performance analysis indicators and the strategic rebuilding of new positions in stocks expected to yield positive results.
■ Active Trading: The market is currently witnessing active trading in specific investment groups and selected stocks that are driving market movements, creating a positive momentum in transactions.
Encouraging Price Levels: Many stocks have recently recorded price levels that inspire the initiation of new investment centers, signaling an optimistic outlook.
■ Positive results: The results announced for listed companies in the first nine months of 2023, led by banks, showed positive indicators of financial performance, which encourages intensification of purchasing operations in anticipation of cash distributions and grants, and 142 companies achieved net profits of about 2.074 billion dinars, an increase of 30.4 percent. %, compared to the level of profits for the first nine months of 2022, which then recorded about 1.59 billion dinars.
■ Interest changes: Most expectations indicate that the US Federal Reserve will begin easing its monetary tightening policy at its upcoming meeting today, Wednesday, not to mention its intention to reduce interest rates during 2024, which consequently means increasing the attractiveness of stocks once again to increase their glow.

In addition, the liquidity flowing to the stock market continued its remarkable record highs, reaching 79.4 million dinars, an increase of 17% during yesterday’s trading session, of which about 66.5 million dinars were directed to the shares of the Premier Market, while the Main Market received about 12.89 million dinars. Yesterday’s session ended with a continuation of the collective rise of the indices by 1.07% for the Premier Market Index, with a gain of 78.5 points, to reach 7,425 points. The Main Market Index also rose by 0.25%, with a gain of 13.7 points, to reach 5,531 points. The General Market Index rose by 0.9%, with a gain of 60.1 points, to reach 5,531 points.

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