Kuwait Stock Exchange (KSE) is forecast to witness a lackluster atmosphere during upcoming fasting month of Ramadan, however such a general stagnant situation may be relatively altered if incentives are created, according to traders.
Such a gloomy picture may be relatively brightened if key portfolios and investors intervene in the operations and preserve the current reasonable level, as the KSE Price Index stood at 7,000 points, today, after the past week record bearish trend, where the bourse main indices shed up to 100 points, twice.
Absence of the market makers and suspension of a number of speculators have negatively affected many companies, thus the relevant supervisory authorities must review the restrictions, enforced on the investors, and soften them to avert their possible escape to regional markets, with flexible regulations.
Hamad Al-Shemmari, opining on the forecast lackluster trades in Ramadan, said major traders favor limited investments during the fasting month, due to stagnant sentiments prevailing among the other traders, due to intensive social and religious duties. The indices are forecast to drop “but we hope they will not fall to worrying levels,” Al-Shemmari said in an interview with KUNA.
A bullish or bearish trend at the bourse during Ramadan largely hinges on “presence of market makers,” said the trader, Mohammad Al-Hajeri, expressing his belief that the KSE might witness a scenario similar to the backward conditions that had persisted since start of this month.
Mohammad Al-Enezi, another investor, acquainted with the stock market trends, said robust trading would be restored in the middle of August when many citizens, namely the business oriented ones, return to work after the summer vacation.
In today’s session, the main indexes settled in the green zone amid hefty stock purchase and the Price Index settled at 7,000 points. The session was distinguished with lack of fierce speculations and slump of the traded stocks’ value.
The trading session came to an end, with green dominating the board at Kuwait Stock Exchange as the weighted index finished at 473.88 points on an up of 2.3 points, the price index at 7,024.26 points on an up of 84.02 points, and the KSX 15 at 1,155.91 points on a gain of 3.08 points. Trades came to 4,259 spot transactions by end of action, worth KD 17.7 million with some 164.08 million shares changing hands by fall of curtain.
Meanwhile, a report released by Beitek Capital Company said the total market value dropped 3.3 percent to KD 31.3 billion last week, due to slump of many blue-chips.
Share of the National Bank of Kuwait (market value at KD 4.6 billion) dropped one percent, that of Zain telecommunication company fell KD 2.7 billion, decreasing by 4.4 percent.
Shares of three Islamic companies rose and stocks of 46 others dropped, where the market value of these Islamic Shariaa-abiding companies fell by 4.7 percent to settle at KD 7.4 billion.
The sector of Islamic banks, meanwhile, continued with negative performance, where stock of Kuwait Finance House ( market value at KD 3.2 billion) dropped 3.8 percent, while Boubyan Bank stock share (market value at KD one billion) fell 3.7 percent. Share of Ahli United Bank (market value at KD 901 million) decreased 4.5 percent.
Source : KUNA Kuwait News agency
