KUWAIT CITY, Oct 31: The main indices of the Boursa Kuwait declined at the beginning of trading, Sunday under pressure from the decline of 8 sectors, led by banks, the decline in banking stocks and several leading entities led to a significant decline in general indicators, which deepened the market’s losses, reports Al-Rai daily.

The sales that dominated the general direction of trading in these stocks, were nothing more than systematic liquidation by electronic accounts, financial portfolios, and investment funds, had significant effects on the pace of trading, and these movements cast a shadow on the indicators to record large losses, translated by the market value by losing 840 million dinars in the first sessions. The week and only two sessions before the monthly closings.

The Premier Market had the greatest impact on the losses achieved by the stock market yesterday, as it recorded a decline of 176.08 points, equivalent to 2.49 percent, to close at 6,904.75 points, i.e. at its lowest level since July 14, 2021, noting that the lowest point at which the index traded yesterday was 6,899.5 points.

During the trading session, 112 stocks were traded, of which 18 closed with an increase, 83 with a decline, and 11 stocks without a price change to maintain the previous close. However, the movement of all these stocks between decline and rise resulted in the general index of the stock exchange closing with a decrease of 141.87 points, equivalent to 2.18 percent, to trade at Its lowest level since July 13, 2021, while the main market recorded a decline of 58.65 points.

The volume of liquidity in circulation amounted to 52.58 million dinars, of which 46.54 million represented the basis of the first market transactions only, which shows that the concentration of most of the buying and selling operations, liquidation, and influential sales were the share of the leading stocks, the majority of which represent major components of the Premier Market.

It was noted at the end of the session that the most traded stocks in terms of value recorded a decline ranging between 2 and 5 percent of their market value due to random liquidation operations in which different accounts and portfolios participated.

It is expected that this decline will have a significant impact on the performance of investment funds by the end of October, as tomorrow coincides with the monthly closing day, which will increase the depth of the losses awaiting the funds, as data indicate that they will incur huge losses.

Investment sources said that global and regional financial markets are affected by wars and political developments that countries are witnessing, but the financial market is always affected in line with the general pace of all markets as it is part of them, pointing out that many financial markets trade in a balanced manner between activity at times and decline at other times. However, the Boursa Kuwait has lost the most compared to many markets during the recent period.

She added that the absence of investment alternatives in the market, the lack of flexibility in applying standards and controls on companies, and expanding the scope of cooperation between groups to take the initiative to support their stocks through available tools and provide positive economic data represent basic factors that can be relied upon to provide a suitable environment for the stock market to fully recover.