Kuwait Stock Exchange Incurs 940 Million Dinars in Losses Over Two Weeks

The Kuwait Stock Exchange incurred capital losses of approximately 940 million dinars during the week ending with the session on October 15, as selling pressure intensified and risk appetite waned amid ongoing geopolitical tensions and investors awaiting corporate results for the first nine months of the year. The market’s capitalization fell from about 51.69 billion dinars at the end of the previous week to 50.76 billion dinars, a decline of nearly 1.8%, coinciding with drops in all major indices and a 4.3% decrease in weekly liquidity to around 346.8 million dinars. The General Market Index closed at 8,475.93 points, down by approximately 156.78 points, or 1.82%, compared to the previous week’s close of 8,632.71 points. The Main Market led the losses, with its index falling 3.07% to 8,587.96 points, shedding 272.07 points, while the First Market Index declined 1.55% to 8,891.97 points, losing 140.39 points. These movements reflect growing caution in trading, as investors reassessed their investment positions in light of regional developments and global uncertainty surrounding the trajectory of inflation and interest rates. Traders are also awaiting corporate results, which will provide clearer indicators of operational performance, profitability, and the ability of listed companies to navigate economic changes.

Geopolitical risks weighed on markets, and oil prices fell below $104 per barrel for Brent crude, after the benchmark had risen by about 1.3% during the first three sessions of the week. West Texas Intermediate (WTI) crude traded near $95 per barrel. The decline came as a wave of stock selling prompted investors to reduce their exposure to risky assets, with liquidity shifting toward safer instruments, thereby amplifying the impact of overall market sentiment over geopolitical risks related to energy supplies. However, the price drop does not signal a reduction in risks for the oil market, as shipping movements in the Arabian Gulf, the Strait of Hormuz, and the Bab el-Mandeb remain vulnerable to security developments, with concerns that any new disruptions could affect insurance and shipping costs and crude flows to global markets.

In this context, the U.S. administration is considering easing some restrictions on ships linked to the so-called “shadow fleet,” aiming to increase the flow of oil and petroleum products and lower shipping costs. According to a U.S. official, discussions are focused on allowing the transport of non-sanctioned oil cargoes on vessels previously subject to restrictions, rather than permitting the transport of sanctioned Russian or Iranian shipments. These moves follow the decision to suspend sanctions on Russian diesel fuel, which drew criticism from Ukraine and Europe, as Washington seeks to contain pressure on energy markets and transportation costs. This reflects the difficulty of balancing political sanction tools with the need for supply and price stability.