Mutual Funds Maintain Positive Gains Despite Omicron

Despite the pressing repercussions on the performance of the Kuwait Stock Exchange due to renewed fears of the Corona pandemic, especially in light of the emergence of the new mutant “Omicron”, the investment funds maintained positive and significant gains led by the KAMCO Investment Fund, which achieved the highest performance at the level of local funds with a return of 25.4% , which is the only fund that achieved returns higher than the general market index.

In total, the performance of traditional funds ranged between 25.45 and 12 percent for the Tharwa Investment Fund.

As for Islamic funds, the performance ranged between 21.94 percent for the Al-Durra Islamic Fund managed by “Kamco Invest” and 10.89 percent for the local Cap Corp fund.

Despite the sharp shock that the market witnessed in November, all funds still maintained good positive returns from the beginning of the year until the end of last November.

The funds are characterized as a long-term strategic investor, the majority of their investments are concentrated in heavy and premium shares, which are the fastest in recovering their gains, as well as giving shareholders cash dividends, and in practice the experience of the pandemic crisis since its outbreak in late 2019 has shown that the long-term strategic investor is the most profitable and highest profitable compared to sharp speculation on stocks. High-risk, which are classified as paper stocks.

On the other hand, investment sources said that the market at this stage contains many strong driving factors, most notably the abundance of liquidity that investment companies have, which enables them to seize opportunities and return to purchase, especially on preferred shares whose prices have declined, with the approach of the end of the year and preparations for cash distributions.

In terms of corporate liquidity and cash, KAMCO’s financial statements showed that it has liquidity and “cash” of more than 31 million dinars, as the highest investment company that contains “cash” in its balance sheet.

It is worth noting that the main indicators of the Kuwait Stock Exchange declined in November 2021, as it recorded the second largest decline during the month, following the sharp decline, which affected most of the markets in the region, as well as globally.

The main 50 index witnessed the highest monthly decline rate of 4.9 percent, in light of the trend of most of the index’s constituent shares to decline. The premier market index and the general market index recorded a monthly decline of 4.5 percent, followed by the main market index, which lost 4.3 percent of its value in November 2021.

Accordingly, Kuwait’s ranking declined in terms of gains recorded since the beginning of 2021, and the general market index recorded gains by 22.4 percent, while the “main 50” rose by 26.5%, and the “first market” by 21.4 percent.

 

SOURCE  :      kuwaitofferings

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