The Kuwait Stock Exchange attracted liquidity amounting to approximately 10.2 billion dinars in 2023, showcasing the sustained appeal of the Kuwaiti market despite global economic and geopolitical challenges.
As the new year 2024, approaches, the Al-Anba daily says, the stock exchange anticipates positive growth rates and increased trading activity, supported by six key factors:
- A shift in the monetary tightening policy by the US Federal Reserve and global central banks, placing stocks at the forefront of investors’ preferences.
- Continuation of attractive prices for building new investment positions in various listed stocks, including leading and operating stocks.
- Expectations of exceptional performance in the banking sector, following a remarkable jump in financial results for the first nine months of 2023.
- Anticipated interim distributions (exceptional) from leading banks and companies, with eight companies distributing about 320 million dinars for the first six months of 2023.
- The Capital Markets Authority’s plan to activate financial and investment tools, such as securities-based crowdfunding and automated investment advisors, starting from January 2.
- Stability of Kuwaiti oil prices at $80 per barrel, supporting the economy and increasing spending on capital projects, with positive effects extending to the stock market.
Analyzing the annual performance of stock market indices, the primary market index declined by 7.9% at the end of the year, losing 638 points and closing at 7,477 points. The main market index lost 0.5%, closing at 5,569 points, and the general index increased by 6.5% to close at 6,817 points.
The overall market value of the Kuwait Stock Exchange decreased by approximately 14%, totaling 40.259 billion dinars at the end of 2023, compared to 46.7 billion dinars in 2022. Notably, the decline is mitigated by factors such as the delisting of Ahli United Bank Bahrain shares, acquired by Kuwait Finance House, and market losses due to profit-focused sales operations.
The total liquidity in the Kuwaiti stock market during the year was 10.2 billion dinars, showing a 32% decrease from the previous year, with a daily average of 43 million dinars. Leading stocks contributing significantly to liquidity include Kuwait Finance House (KFH), Watani, Agility, Zain, and Boubyan.
The stock market performance in 2023 was influenced by various factors, including the negative repercussions of the American banking crisis, a decline in global oil prices, a global interest rate hike, and regional geopolitical conditions. Despite these challenges, the Kuwait Stock Exchange indices closed the year on a positive note, with collective increases in the closing session of 2023.
The general market index rose by 0.45%, the first market index by 0.5%, and the main market index by 0.25%. The last trading session recorded a liquidity volume of about 50.7 million dinars, with the first market acquiring 37.68 million dinars and the main market receiving 13.02 million dinars in liquidity.
