473.7 million dinars in market capitalization gains... over two sessions

Kuwait’s stock market recorded approximately KD 473.7 million in capital gains during the first two sessions of the current week, signaling a gradual return of confidence to the market following the easing of geopolitical concerns. This recovery was bolstered by improved investor sentiment, the return of liquidity to normal levels, and the launch of the earnings announcement season for the first half of the year, which began on a positive note, particularly from the banking sector.

This strong performance followed a de-escalation of regional tensions after the ceasefire between the United States and Iran, which ended the period of anticipation and caution that had dominated traders’ decisions in recent weeks. Consequently, many portfolios and investment funds have gradually returned to building positions in operational stocks, especially leading ones. Recent trading sessions reflected a noticeable improvement in investor appetite, as trading values rose to KD 84.9 million by the end of Monday’s session, confirming that funds are returning to the market amid reduced psychological pressure caused by geopolitical developments over the past few weeks.

By the close of yesterday’s session, the total market capitalization reached KD 52.3 billion. The First Market was the main driver of gains, with its capitalization rising by approximately KD 527.64 million over just two sessions to reach KD 43.45 billion by the end of Monday’s trading, compared to KD 42.92 billion at the close of last Thursday. This growth benefited from the positive performance of leading stocks, primarily banks and operational companies with strong financial positions, which typically attract the largest share of local and foreign investment fund flows.

Conversely, the capitalization of the Main Market declined by approximately KD 54.27 million to reach KD 8.86 billion by the end of Monday’s trading, down from KD 8.91 billion at the end of last week. This decline can be attributed to the continued reallocation of liquidity from small and mid-cap stocks to leading stocks, as investors in the current phase focus on more robust and profitable companies, coinciding with the start of quarterly earnings announcements.

The disclosure season remains one of the key market catalysts, as preliminary results for several banks and major companies showed profit growth. This has strengthened expectations that the current season will yield good financial results, supporting the continuation of positive momentum, especially given the strong financial positions of the banking sector and the ongoing operational activity of leading companies.

From a technical perspective, the continued rise in liquidity alongside index gains is a healthy indicator, reflecting that current increases are based on genuine buying activity rather than short-term speculation alone. This provides the market with an opportunity to continue achieving capital gains, provided current catalysts persist without the emergence of other external variables that might prompt traders to hedge, anticipate, or exercise caution once again.