Kuwait Stock Exchange withstands wave of external pressures

The Kuwait Stock Exchange closed the week on a note of confidence, having successfully weathered a wave of external pressures and rapid geopolitical developments between the United States and Iran, including their potential impact on the Strait of Hormuz. This performance underscored the market’s growing capacity to absorb shocks and respond with calm and composure, avoiding sharp volatility in the face of regional escalation.

This stability coincided with a climate of anticipation and caution among investors, which primarily affected trading activity. Liquidity, trading volumes, and the number of transactions declined, while the market capitalization of listed companies remained resilient, registering only a negligible decrease of 0.1%. This reflects the strength of listed equities and the absence of panic selling or large-scale liquidations.

Market movements during the week indicated that investors shifted toward repositioning and seizing opportunities rather than exiting the market. Selective buying targeted many small and mid-cap stocks that possess growth fundamentals or were trading at attractive price levels. This activity provided clear momentum to the Main Market, enabling it to deliver better performance and absorb a significant portion of the pressures affecting the First Market, which comprises large-cap leading stocks more sensitive to institutional portfolio movements.

This divergence in performance between the two markets reflects increasing maturity in investor behavior. Moves are no longer driven by collective reactions but are becoming more selective, as investors seek investment opportunities presented by temporary downturns. This has helped mitigate the impact of declines in leading stocks on the overall market performance, fostering a balance among the exchange’s components.

Broad-based gains recorded by all indices on Thursday’s trading session further reinforced the week’s positive outlook, signaling a gradual return of buying power as selling pressure eased. This confirms that the market still possesses internal support factors capable of regaining momentum once anxiety levels subside, particularly given the continued strength of the financial fundamentals of listed companies, improved results for many of them, and the stability of the local economic environment.

The general market index showed resilience, rising slightly by 0.01% to close at 8,664.52 points at the end of the week, compared to 8,663.33 points at the close of the previous week.

The number of transactions fell by 11.9%, dropping from 129,700 to 95,213 deals during the week. Meanwhile, the traded value decreased by 13.11%, amounting to KD 51.26 million, to reach KD 339.7 million. Trading volume declined by 11.5%, equivalent to 190.04 million shares, to total 1.45 billion shares.

The market capitalization of companies listed on the Kuwait Stock Exchange decreased by 0.095%, or KD 49.3 million, to stand at KD 51.86 billion at the end of the week, down from KD 51.91 billion at the close of the previous week.

Market stability in the face of geopolitical developments was driven by gains in the Main Market, which rose by 0.96%, or KD 85.66 million, to reach KD 8.92 billion, compared to KD 8.84 billion at the end of the previous week. The Main Market index increased by 0.96%, or approximately 85 points, to close at 8,853.92 points, up from 8,769.01 points at the end of the previous week.

Conversely, the market capitalization of companies listed in the First Market fell by 0.313%, or KD 134.98 million, to reach KD 42.9 billion, compared to KD 43.07 billion at the end of the previous week. The First Market index declined by 0.18%, or 17 points, to close at 9,073.87 points, down from 9,090.48 points at the end of the previous week.

The Kuwait Stock Exchange concluded Thursday’s trading session with broad-based daily gains across its indices. The general market index rose by 0.17%, or 14.58 points, to reach 8,664.52 points, bringing the market capitalization of listed companies to KD 51.8 billion. The First Market index increased by 0.07%, or approximately 6.72 points, to close at 9,073.87 points, with the market capitalization of listed companies in that segment reaching KD 42.9 billion. The Main Market index rose by 0.62%, or 54.97 points, to reach 8,853.92 points, bringing the market capitalization of listed companies to approximately KD 8.92 billion.