Kuwait Stock Market Loses KD 1.11 Billion in Market Capitalization Over Two Weeks

The Kuwait Stock Exchange continued its negative performance during the week ending on Thursday, October 22, under the weight of selling pressure and caution that dominated trading, amid ongoing geopolitical tensions. Market indices closed the week with clear losses, coinciding with a decline in liquidity levels compared to the previous week.

The market capitalization of the exchange lost approximately 1.11 billion dinars over one week, dropping from 50.759 billion dinars at the end of the previous week to about 49.647 billion dinars, a decrease of 2.19 percent.

This occurred alongside a drop in the General Market Index by approximately 185.12 points, or 2.18 percent, falling from 8,475.93 points to 8,290.81 points.

Losses were more severe in the Main Market, where its index fell by approximately 309.04 points, or 3.6 percent, declining from 8,587.96 points to 8,278.92 points. Meanwhile, the First Market Index lost about 168.37 points, or 1.89 percent, closing the week at 8,723.60 points, down from 8,891.97 points at the end of the previous week.

Weekly performance showed that pressure was heaviest on the Main Market segment. Although rebounds witnessed in some trading sessions occurred, they were insufficient to offset accumulated losses, despite some stocks reaching lower price levels and seeing selective buying activity.

This happened despite positive financial results announced by a number of banks during the week, which helped support some leading stocks during certain trading periods. However, their impact was not enough to change the overall market trend amid continued caution.

The losses coincided with a clear decline in trading activity. The traded value during the week amounted to approximately 288.36 million dinars, compared to about 346.80 million dinars in the previous week, a decrease of 16.9 percent.

Trading volumes also fell by 18.1 percent, from about 1.315 billion shares to 1.077 billion shares, while the number of transactions increased slightly by 1.36 percent to 104,080 deals.

The First Market accounted for approximately 195.49 million dinars of the total weekly liquidity, down from 219.48 million in the previous week, a decrease of 10.9 percent. Meanwhile, liquidity in the Main Market stood at 92.87 million dinars, down from 127.31 million, a sharper decline of 27.1 percent.

Trading volumes in the First Market fell by 14.3 percent to 546.4 million shares, while those in the Main Market dropped by 21.6 percent to 531.1 million shares.

The simultaneous decline in prices and liquidity indicates that a segment of investors remains on the sidelines. Recovery attempts require a return to higher levels of liquidity and demand to compensate for a larger portion of the losses recorded by stocks in previous sessions.

In the closing session of the week yesterday, stock exchange indices returned to a broad decline. The General Market Index fell by 0.47 percent, equivalent to 39.19 points, closing at 8,290.81 points.

The First Market declined by 0.48 percent, or 42.27 points, to 8,723.60 points, while the Main Market fell by 0.41 percent to 8,278.92 points. The "Main 50" index lost approximately 0.15 percent, closing at 9,086.19 points.

Liquidity in today’s Thursday session reached approximately 59.63 million dinars, through the trading of 229.8 million shares across 23,700 transactions.

Declines dominated sector performance at the end of the week, with eight sectors posting losses led by healthcare, which fell 3.36 percent, consumer goods down 1.63 percent, and basic materials down 1.12 percent. Meanwhile, five sectors rose, most notably energy, which gained 1.20 percent, utilities up 0.79 percent, and insurance up 0.53 percent.