The uncertainty about the new capital market authority law, and lack of incentives are scaring major traders away from the Kuwait Stock Exchange (KSE), Kuwaiti economists warned Sunday.
“Technically the market is undergoing a very tough and difficult time that is not conducive to investment,” Kuwaiti Economist Adnan Al-Dulaimi told KUNA.
“The uncertainty about several economic issues and their impact on the stock market are confusing to market makers which make they unwilling to take any risk in these circumstances.” Al-Dulaimi also noted that the lack of appropriate rules, regulations and incentives were behind the nearly complete absence of the market markets in the recent sessions.
“Despite the near-absence of market makers who were previously dealing in hundreds of millions of dinars from the market, some traders are active on the market and are trying to exploit the current situation to take advantage of low price levels of many stocks, especially small ones whose value is under 100 fils,” he told KUNA. For his part, Economist Mohammad Tarrah echoed a similar view.
“Many of real market makers or major traders have left Kuwait stock market and moved to other Gulf markets,” he told KUNA.
“The Kuwaiti stock market is no longer luring traders,” he admitted. Tarrah expected that the market will continue this way on the short-run.
“Especially taking into account the slump of selling waves to disturbing levels over the recent local and regional political developments,” he said.
“This situation requires measures to lure investors back and restore investor’s confidence in the stock market,” Al-Tarrah underscored.
Kuwait Stock Exchange (KSE) ended Sunday’s session in red zone as the weighted index came to 487.38 points, losing 4.83 points, the price index recorded 7,233 points, losing 104.37 points and the KSX 15 reached 1,191.71 points, losing 12.15 points.
Trades came to 4,364 worth KD 22,952,002.482 and a volume of 175,067,683 shares.
Source : KUNA Kuwait News agency
