Boursa regains ground with 311 million dinars in gains

The Kuwait Stock Exchange continued its upward momentum for a second consecutive session on Tuesday, rebounding after steep losses recorded earlier in the week due to regional tensions.

The market added around 311 million dinars, recovering more than half of the 1.87 billion dinars it had lost on Sunday amid investor fears triggered by the escalating conflict between Iran and Israel.

Despite rising geopolitical tensions and aggressive rhetoric from both the U.S. and Iran — including warnings urging civilians to evacuate major cities — the Kuwaiti market showed signs of resilience. A calm trading atmosphere prevailed, and all major indices closed in the green, reports Al-Rai daily.

The Premier Market Index rose by 0.62%, the General Market Index gained 0.65%, the Main 50 Index climbed 1.03%, and the Main Market Index advanced by 0.84%.

The day’s performance was supported by gains across 11 out of 14 sectors, with the healthcare sector leading the way with a jump of 5.02%. On the downside, three sectors declined, led by energy, which dropped 2.06%.

Market liquidity also showed signs of improvement, rising 4.4% to reach 107.76 million dinars. Trading volumes surged 27.1% to 537.25 million shares, although the number of executed trades dipped slightly by 3.8%, totaling around 25,300 transactions.

Analysts say the rebound highlights strong investor confidence in Kuwait’s economic foundations, supported by the solid performance of listed companies. Since the beginning of the year, the Kuwait Stock Exchange has been one of the world’s top performers.

However, caution still lingers. Investors are awaiting the outcome of the U.S. Federal Reserve’s monetary policy meeting, with speculation mounting about a possible interest rate cut that could enhance global market sentiment. At the same time, concerns over the possibility of further regional escalation continue to weigh on investor psychology.

Market participants, particularly institutional investors, appear to be shifting towards tactical accumulation, focusing on leading banking stocks amid expectations that the recently approved public debt law and the anticipated mortgage law will boost sector profitability. Meanwhile, speculative trading in small and mid-cap stocks remained high, dominating the most active and most profitable shares during the session.

Optimism is also fueled by anticipation of first-half earnings reports, which are expected to show positive results. Many listed companies are actively pursuing acquisition opportunities and expansion plans, both locally and internationally, reinforcing their long-term growth prospects.

Across the Gulf, however, market sentiment was more subdued. While Kuwait and Bahrain managed gains, other markets fell under pressure due to the regional conflict. Saudi Arabia’s index dropped 1.4%, dragged down by losses in Al Rajhi Bank and Saudi Aramco. Dubai fell 0.6%, Abu Dhabi dipped 0.5%, Qatar and Oman each declined 0.5% and 0.3% respectively. Bahrain, meanwhile, rose 0.3%. In North Africa, Egypt’s EGX30 index lost 1%.

While the regional outlook remains clouded by geopolitical risks, Kuwait’s stock market has shown that investor confidence and solid economic indicators can help offset the worst of external shocks — at least for now.