The Kuwait Stock Exchange Absorbs The Shock And Listed Shares Recover The Most Losses

Contrary to expectations, and following a significant drop in the Kuwait Stock Exchange's transactions during the first hour of trading yesterday, the listed shares made up for most of the losses suffered during the second half of the session, allowing the general index to close with a limited loss of 23.5 points, or 0.3 percent, after falling to 7,539 points.

According to Al-Rai, the cohesion of the first market's shares, which finished with only a 1.9-point fall, and the purchasing power demonstrated by the banks and leading listed firms, had a substantial impact on restoring the tempo of trade and its stability.

New in light of the market's liquidity density, which reached 112 million dinars for the first time since November 3, 2021, when liquidity reached 122.9 million dinars.

During yesterday's session, there were 47 automated closures on listed entities, with four of them seeing multiple auctions, including "Magharebia Holdings," "Wethaq Insurance," and "Portland Cement," which were 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 take advantage of opportunities created by the first shock, helping to restore the stock market's balance, especially since the general market was aware of expected market fluctuations in the event of a Russian strike on Ukraine, as the major players kept their investment positions.

Portfolio and investment fund managers demonstrated the balance in their operations yesterday, as they calmly responded to a drop in indices in the first minutes, which had a direct impact on the decision to repurchase to restore stock 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 securities

The intervention of foreign institutions in buying alongside local investors created the belief that the Kuwait Stock Exchange has become more profound than before as a regional and global investment destination, while the largest group of its shares resisted indicator fluctuations, assisting in the rapid return of confidence.

Through the circulation of 390.8 million shares through 19,464 transactions worth 111.8 million dinars, the Kuwait Stock Exchange's general index decreased 23.5 points to 7,637.55 points, a decrease of 0.3 percent.

The Premier Market closed at 8320.27 points, down 0.02 percent, after trading 180.8 million shares in 10,278 transactions for a total value of 84.4 million dinars, while the main market index fell 77.19 points to 6,291.02 points, down 1.21 percent, after trading 210 million shares in 9186 transactions for a total value of 27.3 million dinars.

With the opening of trading yesterday, "Al-Rai" monitored random selling by individuals as a natural result of the uneasiness that existed in the scene, but most of the sellers quickly returned their shares, albeit at a higher cost, especially the shares of banks and several dinar entities.

One of the managers of major investment funds confirmed that the panic that dominated market transactions yesterday morning revealed wholesale investment opportunities, including on the Kuwait Stock Exchange, noting that most funds will not exaggerate their investment positions, but will instead work to support them, especially given the expected consequences of the Russia-Ukraine conflict.

He expects Kuwaiti equities to recover swiftly following the national holidays, saying, "We pre-empted the wave of the drop with technical liquidation operations to supply (capital) that may be used in such circumstances."

The Premier Market's shares accounted for 84.4 million dinars of total traded liquidity, while the main market's shares accounted for only 27.36 million, as it was noted that many of the main market's shares were the lowest during the session due to the lack of market-making, which concentrated on the leading stocks in the majority of cases.

There were a total of 141 shares traded yesterday, with 106 listed companies' shares finishing with a mixed decline, 23 businesses with an increase, and 12 companies' prices being unchanged from the previous session's closings.

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