03/04/2015 11:20 AST
The Kuwait Stock Exchange (KSE) has had a crucial trading week, as the 1Q ended and a new one started. Common between both were selling pressures, anticipation and speculations, analysts have said.
Over the week, various factors have taken toll on the market, topped with the military operation in Yemen, the end of a deadline for announcing 2014 financial statements, and a refrain by market makers from supporting performance, they said in separate statements to KUNA.
Optimism from the performance of the Saudi market at the start of the week had positive effect on the rest of the Gulf, as the KSE Priced Index jumped by more than 100 points, Director General of Al-Arabi Financial Brokerage Co. Maitham Al-Shakhs said. Traders had high hopes.
Unluckily, the hopes were soon quashed by regional developments, namely a Saudi-led operation against Houthi rebels in Yemen, feeding fluctuations among investors, he added to KUNA. Again the delay of amendments to law of the Capital Markets Authority of Kuwait (CMAK) added to this.
Low liquidity has also been common over the five sessions, Al-Shakhs. Value of trades hardly exceeded KD 2 million during the first hour of any session through the week.
Severe fluctuation grabbed the market over the week, due to selling pressures and rumors on suspension of certain shares of companies that did not announce 2014 results, though a 90-day deadline ended on March 31, chairman of Kuwaiti Traders Society Mohammad Al-Tarrah said.
Only yesterday, the KSE suspended trading over the shares of the International Financial Advisors (IFA), Aldeera Holding (ALDEERA), Noor Financial Investment Company (NOOR) and Amwal International Investment Company (AMWAL).
Mid-week trading saw selective buying of operational stocks, rising speculations and profit-taking, he added.
Validity of oil prices, which has been effective since the 3Q of 2014, carried on, in addition to the absence of technical incentives, financial analyst Ali Al-Namash told KUNA.
In addition, most trades were made by individuals, and even "daring" speculations looked "timid" this week.
On Sunday, the first trading session of the week, KSE closed up with all the three main indexes edging up, making up for sharp losses it sustained a week earlier.
The Price Index, Weighted Index and Kuwait 15 Index close up 6322.7 points, 9.3 points and 27.4 points respectively. But it braced for a downturn over the three following session.
Today the market ended session on mixed board as the weighted index gained 0.12 points, reaching 424.81 points, the price index lost 15.15 points, reaching 6,221.37 points and the Kuwait 15 gained 1.7 points, reaching 1,021.81 points.
KUNA
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