The Kuwait Stock Exchange closed November trading with market gains of approximately KWD 523 million, a 1.2% increase, bringing the exchange’s capitalization to around KWD 42.84 billion, up from KWD 42.32 billion at the end of October.
The exchange concluded November trading with notable gains across key indicators, driven by a wave of optimism among traders. This was fueled by strong purchasing momentum on many leading stocks in the first market, as well as medium and small stocks in the main market.
The exchange concluded its monthly trading with the first market index rising by 1.2%, gaining 93 points to reach 7,764 points, up from 7,671 points last month.
The main market index also increased by, 1.3% gaining 85 points to reach 6,608 points, up from 6,523 points. Additionally, the general market index rose by 1.2%, adding 88 points to reach 7,245 points, up from 7,157 points last month.
The continuous increases throughout the month reflect the confidence of both local and foreign investors in the Kuwait Stock Exchange. This optimism is driven by ongoing investment opportunities, particularly in banks and major companies, as evidenced by the positive profits reported at the end of the first nine months of the year.
The profits of first market companies increased by, 4.4% during the mentioned period, reaching 1.71 billion dinars, up from 1.63 billion dinars in the same period of 2023. Meanwhile, local banks saw a 4.6% growth in net profits, recording 1.24 billion dinars, compared to 1.19 billion dinars in the same period last year.
The positive performance of the Kuwait Stock Exchange in November was further supported by its favorable reaction to the Federal Reserve’s decision to cut interest rates by 25 basis points, marking the second rate cut of 2024.
Usually, financial markets rise following interest rate cuts, as they signal an easing of monetary tightening and a reduction in financing costs for companies listed on the markets.
The positive performance of the stock exchange in November was evident as the market value exceeded 43 billion dinars, its highest level since March, in the middle of the month. This increase in capital value reflects the strong purchasing momentum across stocks of all types, including leading, medium, and small-cap stocks in various sectors.
It is expected that the Kuwait Stock Exchange to continue its upward momentum with the ongoing purchasing activity, especially with around 22 trading sessions remaining in the current year.
This suggests that the coming period will witness extensive and strategic movements by traders across various segments, as they build investment positions in light of the announced financial results for the first nine months of 2024. This period is critical as it marks the crystallization of the final fiscal year results, with preparations underway for the cash distribution season and bonuses.
The liquidity flowing into the market decreased by about 6% in November, totaling 1.6 billion dinars, with a daily average of 72 million dinars, compared to 1.702 billion dinars and a daily average of 77 million dinars in October.
Trading volumes recorded a decrease of about 1.098 billion shares, or 12%, as 8.260 billion shares were traded in November, compared to 9.358 billion in October.
Source: Al Anba
