Mortgage financing boosts stock market with bank support

Following the Cabinet’s approval yesterday of the real estate financing law for those eligible for housing care, the Kuwait Stock Exchange recorded notable gains during the second-to-last session of the week, amid strong buying interest in banking stocks.

The exchange also benefited from a calmer market environment and emerging signs of hope for reaching understandings between the United States and Iran, which could pave the way for the resumption of navigation through the Strait of Hormuz.

The exchange opened with broad-based gains, which gradually widened during the session. The General Market Index rose by more than 1 percent, supported by the banking sector, where stocks posted significant gains and attracted notable buying interest. Toward the close, indices trimmed a modest portion of their gains but retained the bulk of them.

As a result, the exchange recovered more than 80 percent of the substantial losses it suffered in Tuesday’s session, which had been driven by pressure from small- and mid-cap stocks.

Trading liquidity declined by 3.2 percent to KD 117.2 million, compared with KD 121.1 million in Tuesday’s session. The First Market accounted for the largest share of this liquidity at 56 percent, while the Main Market captured the remaining 44 percent.

National Bank of Kuwait topped the list of the most advanced stocks in the First Market, rising by nearly 3 percent. It was followed by EFA and United, each gaining more than 2 percent.

Several small- and mid-cap stocks continued to post notably positive performance. Tharaya shares rose by 15 percent, while Anizama shares gained more than 12 percent, and Tanzeef also climbed by over 11 percent.

A total of 133 stocks were traded, with prices rising for 87 stocks, falling for 34, and remaining unchanged for 12. Weighted indices for eight sectors in the market advanced, led by the Consumer Goods sector, which rose by 12.20 percent, and the Utilities sector, which gained 1.49 percent. Meanwhile, indices for four sectors declined, led by the Energy sector, which fell by 1.03 percent, and the Basic Materials sector, which dropped by 0.77 percent. Prices in the Healthcare sector remained stable.

In terms of index performance, the General Market Index gained approximately 75.26 points, or 0.86 percent, to reach 8,830 points. Trading volume totaled 374.1 million shares across 27,264 transactions.

The First Market Index led the gains, rising by about 84.62 points, or 0.93 percent, to reach 9,223 points. Liquidity in this segment stood at KD 65.5 million, with trading volume of 153.2 million shares executed through 15,320 transactions.

The Main Market Index rose by approximately 49.64 points, or 0.55 percent, to close at 9,137 points. Trading value in this segment reached KD 51.6 million, with a volume of 220.8 million shares executed through 17,511 transactions.

Consequently, the exchange’s market capitalization increased by approximately KD 453.8 million, or 0.86 percent, to reach KD 52.88 billion, compared with KD 52.43 billion at the close of Tuesday’s session.

Among the most actively traded stocks by value, National Bank of Kuwait ranked first with KD 14.4 million in trading value, closing at 871 fils. It was followed by Bank and Trust (Baitik) with KD 12.5 million, closing at 773 fils, then Gulf Bank with KD 7.1 million, closing at 450 fils, and Tanzeef with KD 6.4 million, closing at 327 fils. First Takaful ranked fifth with KD 6 million in trading value, closing at 701 fils.

Thريا topped the list of the most advanced stocks, rising 15 percent on a volume of 10.1 million shares to reach 253 fils. It was followed by Al-Nizama, which gained 12.20 percent on a volume of 915,000 shares to reach 1.380 dinars, then Tanziha, which rose 11.22 percent on a volume of 20.2 million shares to reach 327 fils, and Al-Koot, which climbed 6.41 percent but on a volume of only 90 shares to reach 830 fils. First Takaful ranked fifth, gaining 6.37 percent on a volume of 8.7 million shares.

On the other side, Al-Khaliji recorded a 13.96 percent decline to top the list of the most declined stocks, on a volume of 14.7 million shares. It was followed by Nabisco, which fell 9.50 percent but on a volume of only 499 shares to drop to 1.372 dinars, then Markaz, which declined 9.41 percent on a volume of 3.2 million shares to close at 260 fils, and Khalij Insurance, which dropped 3.90 percent but on a volume of only 112 shares to fall to 1.231 dinars. National Insurance ranked fifth, declining 2.86 percent on a volume of approximately 11.5 million shares to close at 170 fils.