The stock market authority’s decision to suspend trading in shares of scores of listed companies over failing to post quarterly financial results did not prevent at least two of the three main indices of the market from making gains. In separate interviews with KUNA, Kuwaiti financial analysts and traders attributed the market’s ability to overcome the negative impact of the trading suspension to the growing awareness among traders as well as the fact that many of the suspended shares are of low value.
They noted that traders are getting accustomed with the seasonal suspension. The market’s heavyweights release of their financial statements and their profits have eased traders concerns and gave the market an impetus.
“The trading suspension of the companies which missed the deadline of issuing quarterly financial statements is repeated every three months and many traders have been getting adapted with it,” Financial Analyst Mohammad and Head of the traders association Al-Tarrah told KUNA.
“The market indices rises in the final moments of the today’s session showed clearly that the majority of traders are unfazed by the suspension,” he added.
He, however, did not rule out the existence of some fears among small traders.
For his part, Financial Analyst Adnan Al-Dulaimi echoed a similar view. “The market value of the suspended companies is not that big compared with that of the leading operating companies, which announced their financial results for the second quarter since the beginning of the month,” Al-Dulaimi told KUNA.
“This was very clear in today’s transactions as almost all the important sectors have performed well.” Financial Analyst Fahad Al-Shammari agreed, adding that the companies procrastinating and delaying their financial statements should be severely penalized by regulators.
“Some listed companies, especially speculative ones are deliberately adjourn their financial statements issuance to buy time and take advantage of the grace period granted to them despite the fact that their statements had been already prepared,” Al-Shammari told KUNA.
“Serious actions must be taken against board of directors of such companies by the market regulators.” On Sunday, Kuwait Stock Exchange (KSE) ended trading on mixed board, as the price index reached 7,266 points, gaining 31.9 points, the weighted index gained 0.81 points and the KSX 15 lost 2.61 points.
The number of trades came to 4,155 with a value of KD 15.3 million and a volume of 189.4 million shares.
The top gainers were (SAFTEC), (KSHC), (SPEC), (HUMANSOFT) and (TAAMEER), while the top volume stock were (GFH), (GPI), (KRE), (ALTIJARIA) and (SENERGY).
Source : KUNA Kuwait News agency
