Stock Exchange Fails to Halt Loss Bleed as Shares Face Pressure

The Kuwait Stock Exchange recorded significant losses during the penultimate session of the week, as many listed stocks faced selling pressure that pushed indices lower, amid continued caution governing investor activity in the market.

Rapid developments in the region have cast a shadow over financial market performance, with growing uncertainty regarding the trajectory of geopolitical conditions due to ongoing exchanges of statements between the United States and Iran, thereby heightening investor uncertainty.

Although the exchange opened with a broad rise across its indices, this positive performance did not hold as selling pressures intensified, causing indices to decline gradually throughout trading, with losses in the general index exceeding 1.05 percent before the close.

During the closing session, the exchange’s indices managed to recoup some of their losses, supported by relative buying activity targeting several stocks, particularly leading ones, which helped mitigate the severity of the declines compared to levels recorded just before the close.

As a result, the Kuwait Stock Exchange lost approximately 410.5 million dinars in value during the session, dropping below the 50 billion dinar threshold to reach around 49.88 billion dinars, a decrease of 0.81 percent compared to Tuesday’s session.

Trading liquidity fell by 4 percent to reach 59.1 million dinars, down from 61.6 million dinars on Tuesday. The First Market continued to capture the largest share of this liquidity at 70 percent, while the Main Market accounted for the remaining 30 percent.

This decline in traded value is considered somewhat positive and alleviates concerns about a broader market downturn, as the selling pressure was not accompanied by an increase in trading volume or a panic-selling atmosphere.

Despite the generally negative market sentiment, some stocks managed to record notable positive performance. Al Markazat led the gainers with increases exceeding 13 percent, followed by other stocks such as Tamayoz and Taseelat.

Conversely, Argan topped the list of the most declined stocks, with losses exceeding 10.6 percent, alongside other stocks such as Mu’addat, Aqar, and Madar.

A total of 131 stocks were traded, with 21 rising, 104 falling, and 6 remaining stable. Weighted indices for 11 market sectors declined, led by the Technology sector, which fell by 5.14 percent, and the Utilities sector, which dropped by 3.82 percent. Meanwhile, indices for two sectors rose: Basic Materials by 0.64 percent and Telecommunications by 0.34 percent.

In terms of index details, the General Market Index fell by approximately 69.28 points, equivalent to 0.82 percent, to reach 8,330 points. A volume of 209.9 million shares was traded through 22,232 deals.

The First Market Index also declined by approximately 60.47 points, or 0.69 percent, to reach 8,765 points, with a liquidity value of 41.5 million dinars and a volume of 109.8 million shares traded through 11,170 deals.

The Main Index dropped by approximately 127.60 points, or 1.51 percent, closing at 8,313 points. The traded value amounted to 17.6 million dinars, with a volume of 100 million shares executed through 11,062 deals.

In terms of trading value, Bitak shares ranked first with 11.7 million dinars, reaching a price of 744 fils, followed by Gulf Bank with 6.3 million dinars at a price of 320 fils, then National Bank with 3.5 million dinars closing at 824 fils, and Sanaya with 2.9 million dinars at a price of 203 fils. Fifth was Markaz with 2.5 million dinars, reaching a price of 260 fils.

Markaz shares led the list of the most rising stocks with a 13.04 percent increase, trading 9.79 million shares, followed by Imtiyaz with a 9.06 percent rise, trading 4,460 shares at a price of 337 fils, then Tasehelat with a 9.01 percent increase, trading 358,400 shares at a price of 242 fils, and Hotels with a 4.23 percent rise, albeit trading only 820 shares, reaching a price of 197 fils. Fifth was Tharia with a 2.48 percent increase, trading 19,750 shares at a price of 207 fils.

On the other hand, Argan shares recorded a 10.62 percent decline, leading the list of the most falling stocks, trading 4.52 million shares and reaching a price of 101 fils, followed by Equipment with a 9.59 percent drop, trading 1.57 million shares and falling to a price of 132 fils, then Real Estate with a 9.41 percent decline, trading 515,800 shares and closing at 87.6 fils, and Madar with a 9.31 percent drop, trading 601,900 shares and falling to a price of 91.6 fils. Fifth was Metals with an 8.33 percent decline, trading approximately 149,500 shares and closing at 154 fils.