Bourse Suffers KD 1.95 Billion Losses in October

The Kuwait Stock Exchange recorded significant losses at the close of its trading for October, with varying declines across its indices; this occurred amid escalating fears of a renewed military conflict in the region and ongoing uncertainty surrounding regional developments, alongside growing inflationary pressures and rising interest rates, among other factors that contributed to increased caution among traders.

October trading saw volatile performance, with declines dominating most sessions and losses reaching substantial levels in several of them; conversely, other sessions recorded notable index gains that managed to offset part of the losses.

The main market index led the list of losers during the month, dropping by 7.03 percent and losing approximately 639.79 points. Meanwhile, the First Market Index declined by 3 percent, equivalent to 275.38 points, resulting in an overall decline of 3.7 percent for the General Market Index, amounting to approximately 325.39 points.

As a result, the market capitalization of the stock exchange lost approximately 1.95 billion dinars during the month, bringing the total market value to 50.62 billion dinars, a decrease of 3.7 percent compared to the level of 52.58 billion dinars at the end of last month’s session.

These results indicate that small and mid-cap stocks bore the brunt of selling pressure during the month, which was clearly reflected in the performance of the main market index, while leading stocks showed a degree of relative cohesion, helping to mitigate the severity of the decline in the First Market Index compared to the Main Market Index.

The traded value reached 1.5 billion dinars, a decrease of 39.5 percent from its level in September, when trading volume amounted to 2.45 billion dinars.

The stock exchange opened with a broad-based rise in its indices before selling pressures intensified during the session, pushing indices into negative territory. The main market managed to reduce part of its decline through a relative rebound during the closing period.

Geopolitical developments in the region continued to influence traders’ decisions, with markets anticipating upcoming talks between the United States and Iran over the weekend, which constituted one of the factors exerting pressure on trading during the session.

Trading value decreased by 17.4 percent to reach 81.1 million dinars, compared to 98.3 million dinars during Wednesday’s session. The First Market continued to hold the largest share of this liquidity at 64 percent, while the Main Market accounted for the remaining 36 percent.

Several stocks achieved varying degrees of gains; however, some of these gains were driven by limited volumes. Napisco topped the list of the most increased stocks with gains nearing 10 percent, followed by Umm Al Quwain stock with an increase approaching 8 percent.

A total of 131 stocks were traded, with 51 rising, 63 falling, and 17 remaining unchanged. Weighted indices for seven sectors in the market rose, led by the energy sector with a 4.02 percent increase and consumer goods with a 0.89 percent increase. Conversely, indices for five sectors declined, led by the technology sector with a 3.95 percent drop and telecommunications with a 1.06 percent drop, while the utilities sector remained stable.

In detail, the General Market Index recorded a decline of approximately 36.41 points, equivalent to 0.43 percent, reaching a level of 8,453 points. A total of 306.4 million shares were traded through 16,378 transactions.

The First Market Index also lost approximately 47.24 points, or 0.53 percent, reaching a level of 8,892 points, with liquidity valued at 52.1 million dinars and volumes of 143.1 million shares, executed through 8,080 transactions.

While the main index gained approximately 5.65 points, or 0.07 percent, closing at 8,454 points with a traded value of 29 million dinars and a trading volume of 163.2 million shares across 8,298 transactions, the market’s capitalization lost approximately 219.1 million dinars, dropping to 50.62 billion dinars, a decrease of 0.43 percent compared to the 50.84 billion dinars recorded at the close of Wednesday’s session.

Regarding the most actively traded stocks by value, Eva ranked first with 8.7 million dinars, closing at 429 fils, followed by Watania with 8.3 million dinars at 142 fils, then Bitak with 5.6 million dinars closing at 750 fils, and Magrouti with 4.6 million dinars at 152 fils. Fifth was Al Arabi Real Estate with 3.6 million dinars, closing at 212 fils.

Nabisco topped the list of the most rising stocks with a 9.90 percent gain, albeit with only 675 shares traded, reaching a price of 1.487 dinars. It was followed by Umm Al Quwain by 7.87 percent, with only 100 shares traded, closing at 137 fils, then Mina by 5.88 percent with 6.1 million shares traded at 126 fils, and Kufpec by 5 percent with 123,600 shares traded at 168 fils. Fifth was Ahlia Insurance by 4.75 percent, with 1,605 shares traded, closing at 772 fils.

On the other hand, Yopak recorded a decline of 4.72 percent, leading the list of the most falling stocks with 52,100 shares traded, closing at 242 fils. It was followed by Awal Fuels by 4.13 percent, with 910,900 shares traded, dropping to 302 fils, then Al Anzima by 3.95 percent with 409,900 shares traded, closing at 730 fils, and Ammar by 3.71 percent with 79,500 shares traded, falling to 90.9 fils. Fifth was Istehlakiya by 3.37 percent, with approximately 1.12 million shares traded, closing at 86 fils.