Dip seen in foreign investment

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KUWAIT CITY, April 18: According to the latest report , the value of foreign investments experienced a decrease of over 300 million dinars, closing at 5.096 billion dinars, reports Al-Jarida daily. A financial source estimated that approximately $200 million exited one of the major companies. It’s anticipated that changes in shareholders’ rights of another company may lead to a reclassification of its weights on the MSCI and FTSE Russell index. Regarding the reported dissolution of shares due to dividend distributions, sources clarified that what occurred was actually a price re-evaluation.

This involves market-based buying and selling mechanisms and a re-evaluation based on diminished shareholders’ rights after in-kind distributions. This differs from the previous method used by the stock exchange, where share prices were adjusted before trading commenced. Currently, share dissolution has been canceled except for capital increases and grants. The market absorbed the sales from foreign accounts and portfolios, benefiting from ample liquidity and cash in investors’ accounts. Cash flow continued due to distributions from companies holding their annual general meetings for the previous year. Local liquidity focused on bluechip stocks, particularly those facing intense selling pressure. These stocks are expected to report good growth in the first quarter, especially in the banking sector. The market is awaiting positive driving factors to adjust its direction amid geopolitical tensions and variable conditions.

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