KSE faces significant losses as Premier Market stocks decline

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KUWAIT CITY, Dec 27, (Agencies): The Kuwait Stock Exchange witnessed a substantial decline in market capitalization during the last three sessions of this week. This downturn can be attributed to the divestment of several prominent stocks listed on the Premier Market, following a notable surge in their values since the beginning of the month.

The market incurred losses totaling approximately 580 million dinars across these three sessions, primarily due to the intensified selling of these stocks to realize quick profits. As of the latest session, the total market value reached 39.79 billion dinars, causing the market to lose its stability above the 40 billion dinars mark.

The week commenced with market losses amounting to 145 million dinars, which escalated to 187 million dinars in Monday’s session and further increased to 247 million dinars in Tuesday’s session, indicating a consistent trend of declining market value.

Conversely, medium- and small-cap stocks are experiencing increased demand in the current period. This is reflected in the rise of the main market index, which includes these stock categories. Expectations are high that the remaining sessions of the year will witness a resurgence in purchasing momentum, especially for leading stocks, driven by the establishment of new positions. Key data, including financial results for the past nine months, indicate a growth rate exceeding 30% compared to the same period last year.

In the latest session, market liquidity increased by 20%, totaling 52.4 million dinars, compared to 43.7 million dinars in the preceding session. Liquidity was notably concentrated around leading stocks, with the National Bank leading the way with trades worth 11.2 million dinars, comprising 21% of the total. Other actively traded stocks included IFA with 5 million dinars, Arzan with 4.7 million dinars, KFH with 4.5 million dinars, and Al-Khaleej with 1.9 million dinars. The volume of traded shares also saw an 11% increase, reaching 191 million shares, led by Arzan with 23.3 million shares and IFA with 16.3 million shares.

The performance of indices varied in the latest session, with the Premier Market Index decreasing by 0.8% (61.8 points), reaching 7,372 points. Meanwhile, the Main Market Index rose by 0.2% (11 points), reaching 5,532 points, and the General Market Index declined by 0.6% (41.6 points), reaching 7632 points.

The market decline in the recent session was particularly led by six sectors, with the banking sector experiencing a 1.04% drop due to a decline in the shares of several companies. Of the listed companies, 57 witnessed a decline in shares, 49 saw a rise, and 16 stabilized, while the shares of 27 companies were not traded.

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