KSE ends volatile week as mortgage finance law puts banks in focus
- The market’s capitalization fell 0.8 percent during the week to 52.9 billion dinars, while mortgage finance approval lifted trading activity and put bank stocks in focus.
The Kuwait Stock Exchange ended a volatile trading week with mixed movements across its main indices, as profit-taking, speculative activity in small and medium-sized stocks and renewed interest in banks shaped trading. Market sentiment was cautious at the start of the week amid selling pressure and concerns over geopolitical developments.
Trading activity later picked up, particularly after approval of the real estate finance law for eligible housing-care beneficiaries, which brought bank stocks into sharper focus. Liquidity reached 91.5 million dinars in the first session, with the First Market accounting for 52 percent and the Main Market 48 percent. Most sectors declined, led by energy and consumer goods, while insurance and healthcare posted gains.
The second session recorded 89.3 million dinars in trades, while nine of 13 sectors declined. Technology fell 9.32 percent, while energy gained 2.81 percent. Trading continued to show strong interest in small and medium-sized stocks, alongside selective rebounds in leading banks. Midweek trading again came under profit-taking pressure, with 104 of 132 traded stocks declining.
The technology sector fell 14.58 percent, while telecommunications and energy recorded marginal gains. The market regained momentum on Wednesday after approval of the mortgage finance law, with liquidity rising to 117.2 million dinars. Eight sectors advanced, 87 stocks gained and market capitalization increased by 453.8 million dinars, or 0.86 percent, to 52.8 billion dinars.
The final session closed with all main indices in positive territory. Trading value reached 87.9 million dinars, while six sectors gained and seven declined. Despite the stronger final session, total market capitalization fell about 0.8 percent over the week, equivalent to around 456 million dinars, to 52.9 billion dinars.
Al-Shall Consulting said indirect investment in the Kuwait Stock Exchange remains highly active, with entry and exit occurring quickly, particularly on the exit side, and stressed the importance of monitoring such activity. The report also noted that foreign investors held positions in 39 First Market companies, compared with 38 at the end of February. Their investments stood at about 6.3 billion dinars, compared with 6.6 billion dinars at the end of February.
According to the report, the decline in the value of foreign holdings may not necessarily reflect selling or withdrawals, but could largely result from a decline in portfolio values exceeding the fall in the Premier Market index. Foreign investments in National Bank of Kuwait and Kuwait Finance House stood at about 4.03 billion dinars on September 23, accounting for around 63.2 percent of foreign investments in the Premier Market.
Al-Shall said foreign investors’ behavior since entering the market did not indicate an adventurous approach and described their investment decisions as institutional, while emphasizing the importance of monitoring changes in ownership levels.
