Diab to 'Al-Siyasa': Decline in several stocks does not reflect their strong fundamentals
Profit-taking and anticipation of geopolitical developments in the region drove the declines
The index for the value and volume of traded shares and the number of deals rose, while the general index saw a slight decline
The market capitalization fell by 0.23%, amounting to approximately 124 million dinars, to reach 52.77 billion dinars
The performance of the Kuwait Stock Exchange was mixed at the end of this week, as the index for the value and volume of traded shares and the number of concluded deals rose, while the value of the general index declined.
Raed Diab, Deputy Head of the First Department of Investment Research and Strategy at KAMCO Invest, told "Al-Siyasa" that the noticeable declines in trading during last Monday’s session could be attributed to natural profit-taking and anticipation of the outcomes following the expiration of the truce under the memorandum of understanding between the United States and Iran. However, the market quickly recovered some of its losses and showed resilience, closing the first index with a marginal decline for the week’s trading.
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Diab added that small and medium-sized companies hold the advantage, while valuations of large companies remain attractive, especially given the significant drop in many stocks that does not reflect their strong fundamentals, presenting promising long-term investment opportunities in the stock exchange.
He stated: "The overall climate leans toward stability, with no signs of intense selling, and the indices have compensated for previous losses recorded after the onset of the conflict in the region." He explained that, fundamentally, the Kuwaiti economy possesses a solid financial position, supported by the state’s substantial foreign assets, stable credit ratings, diverse financing options, and a clear capacity to meet obligations and continue capital spending.
Diab clarified that the factors supporting the Kuwaiti financial market "remain strong and intact," but it is evident that achieving further gains still clearly depends on clarity regarding geopolitical developments and how matters will evolve in the coming period. He added: "Any truce in the region will positively and directly impact the performance of the financial market."
Weekly Performance
The First Market Index declined during this week’s trading by 0.63%, equivalent to 58.14 points, closing at 9,239.72 points. The General Index also fell by 0.23% to reach 8,818.26 points, losing 20.69 points compared to its level last week, which ended on August 13, according to "Mubasher" statistics.
On the other hand, the Main Market Index rose by approximately 1.70%, or 150.12 points, closing at 8,988.42 points. The Main Market 50 Index concluded the week’s trading at 10,632.25 points, up 1.99%, or 207.73 points.
The market capitalization of shares at the end of today’s trading reached approximately 52.77 billion dinars, a decrease of 0.23%, valued at 124 million dinars, from its level of 52.89 billion dinars at the close of last week. In terms of trading activity, conditions improved during the current week; liquidity rose by 37% to 472.59 million dinars, the number of deals increased by 22.82% to 117,470 deals, and trading volumes reached 1.79 billion shares, a weekly increase of 38.98%.
Regarding the weekly performance of Kuwait Stock Exchange sectors, six sectors declined, led by Healthcare by 2.57%, while seven sectors rose, led by Technology by 34.43%.
The Financial Services sector captured the largest share in terms of weekly trading activity, accounting for 39.34% of volumes, equivalent to 702.72 million shares, and 29.53% of liquidity, valued at 14.15 million dinars, and 25.79% of deals, totaling 30,300 deals.
As for shares, “Tijara” led the declines with a 29.54% drop, while “Al-Anzima” topped the green list with a 34.43% gain. “Makhazen” led in trading volume with 164.07 million shares, and “Arkan” topped liquidity with a value of 33.58 million dinars.
This week, the stock market witnessed the end of the disclosure period for quarterly financial statements. Profits of 131 listed companies, whose fiscal years align with the calendar year, rose by 7.94% year-on-year in the first half of 2026, reaching 1.36 billion dinars. Meanwhile, the net profit of these companies surged by 89.72% in the second quarter to 969.58 million dinars. Additionally, ten companies decided to distribute interim dividends totaling 306.74 million dinars to their shareholders for the first half of the year.
