Kuwaiti economists predict ‘balanced’ trading in 1st qtr

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KUWAIT CITY, Jan 13: Several Kuwaiti economists predicted that the first quarter of 2024 would witness balanced trading backed up by leading shares of the banking, financial, and logistic sectors. Speaking to KUNA in various interviews, the economists also indicated that technical factors as well as the price levels for numerous shares within Boursa Kuwait, the stock market, would contribute to the forecast unless other geopolitical factors interfered.

Naif Al-Enezi, an economic expert, told KUNA that Boursa Kuwait usually saw a positive leap in the early portion of the year due to the involvement of heavy-hitting shares such as those belonging to the banking sector, which in turn heat operations at the stock market. Shares for financial services and real estate also played a part in the hubbub earlier in the year in addition to shares of logistic companies, he said, noting that such shares attracted foreign investors due to their adequate prices and high profitability throughout the year. However, as in the case of other markets in the region, Boursa Kuwait is not immune to happenings in the region and the world, which might affect operations. He indicated that the investment sector still could bring in local and foreign investors, noting that the real estate sector would witness disparity, while services might be more stable.

On his part, financial analyst Maitham Al-Shakhs indicated that all eyes would be on the US Federal Reserve in the first quarter of 2024 when it would announce interest rates, which if reduced, would be beneficial for the capital markets. The regional central banks, including the Central Bank of Kuwait (CBK) would put out similar statements on interest rates after the Federal Reserve announcement, he indicated. Al-Shakhs predicted that the market would witness exceptional activities once companies put out their annual reports, indicating that the price of oil should be taken into consideration at trades in Boursa Kuwait. He revealed that Kuwait — along with GCC countries, and OPEC allies — were eager to seek prices of oil between USD 80 – 90 per barrel. Also providing his input, head of the traders union Mohammad Al- Tarrah said that operations in the first quarter of 2024 at Boursa Kuwait would see shares of significant sectors such as banking and vital companies be very active, forecasting the annual liquidity between KD 40 to 50 million (around USD 122 and 153 million). Al-Tarrah hoped that Boursa Kuwait would react positively to local news on several economic decisions, affirming that the market was awaiting news in regards to decreased interest rates globally in addition to urgent settlements of several geopolitical happenings in the world. By Mohammad Kamal (KUNA)

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