Bourse Suffers Huge Loss, Banks Are Concerned

Several factors led to the Kuwait Stock Exchange on Monday incurring severe losses worth KD 471 million,  as the General Index fell 82.6 points, or 1.6 percent, to close at 5,094.22 points, reports Al- Seyassah daily. The Premier Market fell 1.9 percent, losing 108.3 points, and the Main Market index decreased by 0.74 percent, while liquidity shrank 9 percent to KD 37.4 million, as trading volumes decreased 10.5 percent to 190 million shares.

For its part, informed sources attributed the losses to the expectations of declining bank profits in the first half of 2020, especially after announcing losses estimated at KD 341 million as a result of deferring the loan installments for a period of 6 months in the face of the economic consequences of coronavirus where the businesses and other facilities were suspended due to the partial and full curfew. Moreover, the IMF report on the region’s economy and lowering its forecast for growth this year have had a severe impact on investors in the market and pushed them out of many stocks randomly.

The daily reports, quoting sources that the “government toughness in the face of money laundering file has prompted some to liquidate many stocks for fear of the repercussions of the issue on the market.”

 

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