15 companies face challenge of erasing their losses by 2024

A list of 15 companies listed on the Kuwait Stock Exchange faces a challenge in the coming days as they announce their results for 2023.

Owners of shares in 13 small and medium enterprises whose budgets, according to their financial statements for the period ending September 30, 2023, include losses between 50 and 75 percent, in addition to two companies that incurred losses exceeding 75 percent of the capital, including small shareholders, are awaiting clear disclosures about what has developed in the matter.

This is in addition to the conditions of these companies during the last three months of last year, and the strategic plans that they will follow to overcome the accumulated losses during the current year, noting that all 15 companies are listed on the Main Market.

According to the procedures and controls followed, these companies have the right to adopt capitalization plans that include reducing and increasing capital, and the accompanying steps that may result in the entry of new shareholders with shares in exchange for “cash” or debts, which qualifies the company to move to a more stable stage.

After the 2023 statements are approved by the financial auditors and regulatory authorities during the next few weeks, preparations will begin for the annual general assemblies, with which it is expected that the plans of the companies concerned to close the page on their losses will appear, according to the vision of each company and after this is approved by its board of directors and general assembly.

Several companies are listed in the financial services sector and 5 real estate companies, in addition to 3 industrial companies, a company registered in the consumer goods sector, another in the insurance sector, and a third in the health care sector, while some of these companies have financial capabilities sufficient to pull them out from these losses.

On the other hand, small shareholders continue to await any positive developments that qualify their companies to overcome their crises, and thus move to the stage of cash distribution and free grants, similar to dozens of companies listed in the first and main markets, while many companies are keen to maximize the rights of their shareholders and compensate for the opportunities they missed due to the entanglement of ownership in listed stocks, and it is expected that there will be optimal exploitation of the daily trading scene on the stock exchange to overcome any decline in the value of assets.

In terms of trading pace, the Stock Exchange ended its trading in the second session of the new year with a collective rise in its indicators for the second day in a row, supported by purchases on a group of selected stocks in the primary and main markets.

It seems clear that the financial community is optimistic about the current pace and the future of daily transactions, especially in light of the green start of the indices after a series of losses incurred by portfolios, funds, and many individuals as well.

The market witnessed active trading, including sales of a group of other stocks that had recorded notable increases during the recent period.

The general index of the stock exchange closed 38.6 points higher, while trading volume reached 209.308 million shares, worth 50.8 million dinars, executed through 12,035 cash transactions.

The primary market achieved gains of 38.5 points; the “main” market achieved 42.29 points, while the “main 50” closed at an increase of 49.77 points.

Yesterday’s trading included 116 stocks, including 73 that rose and 32 that declined, while 11 stocks closed without a price change.

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