Global Institutions With Inactive Accounts Closed On KSE For 2023

Inactive foreign institutions that track the three emerging market indices (MSCI, FTSE, and Standard & Poor's) have closed their accounts regarding their investment positions on the Kuwait Stock Exchange for this year, following their periodic and annual reviews, while the stock exchange will resume trading next Wednesday after ending the mourning period following the death of His Highness the Amir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah.

Several inactive foreign institutions that track global indexes have reduced their weights or increased their positions in some major local companies during recent reviews. While the last review conducted by FTSE had a slight impact, the total amount of funds flowing into and out of the stock exchange was about 22 million dollars, according to Al-Rai daily.

Furthermore, active international institutions were the most present, because they were not restricted to specific weights or numbers of companies, amid expectations that their positions would be strengthened and increased as a result of selective purchases during daily trading.

Global entities, funds, and investment portfolios that track emerging market indexes constantly monitor local stocks listed on them, according to investment sources. Since their operations are a part of daily trading, active institutions have the most impact on the pace of trading, resulting in an increase in trading volume.

The closings last week revealed that ten leading companies listed on the stock exchange acquired 27.75 billion dinars, or 69 percent of the total market value of 13 sectors, which totaled 40.24 billion dinars. According to size, they are: “KFH,” “NBK,” Boubyan Bank, and “KFH.” Zain, Agility, Al-Mabanee, Al-Khaleej, Al-Tijari, Burgan, and Ooredoo.

Other companies registered in the primary and main markets share the remaining value, but only four sectors showed an increase in their performance since the beginning of the year, which include consumer goods, health care, consumer services, and insurance. Other sectors continue to be led by banks, industry, financial services, and others, which have been losing in relation to their performance since the beginning of the year.

It appears from the reality of purchases and the intensity of the movements of financial portfolios and investment funds that their managers are very interested in reducing losses and achieving balanced closings by the end of this month, as a result of their annual closures, at a time when some are expected to fully compensate for their losses.

In light of recent developments, some investment portfolios may change their plans and outlook for annual closings, which are now only eight trading sessions away.

The major investment institutions have prioritized achieving a balance in their components to take advantage of the price booms recorded by medium- and large-cap stocks, while continuing to focus on companies that generate shareholder returns.

Bank and service company shares have been at the forefront of the goals that portfolios and funds have been moving towards for some time, since it is customary to intensify their acquisitions in order to benefit from the cash distributions and free grants that their shareholders receive every year in accordance with entitlement controls.

The stocks listed on the global emerging markets indexes have the highest liquidity in circulation, while stocks of medium and large groups have become more popular among individual investors and small and medium-sized portfolios in recent months, increasing the intensity of their trading activities.

Comments Post Comment

Leave a Comment

Submit