Contrary to expectations, and after a significant decline in the transactions of the Kuwait Stock Exchange during the first hour of the trading time yesterday, the listed shares compensated for most of the losses that were incurred during the second half of the session, to close the general index with a limited decrease of 23.5 points, equivalent to 0.3 percent, after it recorded a decline to the level of 7,539 points.
Al-Rai quoting sources said, the cohesion of the shares of the first market, which closed with a slight decrease of 1.9 points only, and the purchasing power witnessed by the banks and the leading listed companies, had a significant impact on restoring the pace of trading and its stability.
New in light of the density of liquidity circulating throughout the market, which amounted to 112 million dinars for the first time since November 3, 2021, when liquidity recorded at that time 122.9 million dinars.
The number of automated closures during yesterday’s session reached 47 auctions on listed entities, 4 of which witnessed more than one auction, such as “Magharebia Holdings”, “Wethaq Insurance” and “Portland Cement”, which was followed by the fusion of most of those shares in a wave of buying by the investment community.
Financial portfolios and investment funds led waves of buying to seize the opportunities that resulted from the first shock, which contributed to restoring the stock market’s balance, especially since the general market was aware that there are expected fluctuations in the markets in the event of the Russian strike on Ukraine, as the major players maintained their investment positions.
Yesterday, portfolio and investment fund managers showed balance in their operations, as they calmly met the decline in indices during the first minutes, which had a direct impact on the decision to re-purchase to restore the stocks’ stability, while the implementation of the “Morgan Stanley” (MSCI) review of the weights of Kuwaiti companies was reflected in its emerging markets index positively on the volume of circulating liquidity.
The intervention of foreign institutions in buying alongside local investors created a conviction that the Kuwait Stock Exchange has become more profound than before as it is an investment destination that is not local but regional and global, while the largest group of its shares resisted fluctuation in indicators, which helped in the rapid return of confidence.
The general index of the Kuwait Stock Exchange fell 23.5 points to reach the level of 7,637.55 points, a decrease of 0.3 percent, through the circulation of 390.8 million shares through 19,464 transactions worth 111.8 million dinars.
The Premier Market closed at the level of 8320.27 points, with a decrease of 0.02 percent, through the circulation of 180.8 million shares through 10,278 transactions, at a value of 84.4 million dinars, while the main market index fell 77.19 points to reach the level of 6,291.02 points, a decrease of 1.21%, through trading of 210 million shares across 9186 transactions for 27.3 million dinars.
“Al-Rai” monitored random selling by individuals with the start of trading yesterday, as this was a natural result of the anxiety that prevailed in the scene, but soon most of the sellers regained their shares, but at a higher cost, especially the shares of banks and some dinar entities.
One of the managers of major investment funds confirmed that the panic that dominated the market transactions yesterday morning showed wholesale investment opportunities, including in the Kuwait Stock Exchange, noting that most funds will not exaggerate their investment positions, but on the contrary will work to support them, especially since the consequences of the Russia-Ukraine conflict was to be expected.
“We pre-empted the wave of decline with technical liquidation operations to provide (cash) that can be exploited in such circumstances,” he said, expecting Kuwaiti stocks to recover quickly after the national holidays.
The shares of the Premier Market accounted for 84.4 million dinars of the total traded liquidity, while the shares of the main market accounted for only 27.36 million, as it was noted that many of the shares of that market were the lowest during the session in the absence of market making on them, which focused on the leading stocks In most cases.
Yesterday’s transactions included a movement of 141 shares, as the shares of 106 listed companies closed with a mixed decrease, while 23 companies recorded an increase and the prices of 12 shares did not change compared to the closings of the previous session.
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