KSE closes week with speculations in cheap stocks

05/05/2011 00:00 AST

Kuwait Stock Exchange (KSE) has closed the week with a marked demand for cheap shares amid speculations on the part of a certain group of investors who bought a lot of such shares, especially the ones which are worth less than 100 fils, according to Kuwaiti economists.

Heavy buying for small shares has seduced small-sized dealers to collect the largest possible quantity of cheap stocks in a bid to capitalize on price differences, they told KUNA in separate interviews here Thursday.

The performance of the Kuwaiti bourse on Thursday synchronized with corporate disclosures for the first quarter of 2011, especially by leading firms, mainly Zain, Mohammed Al-Hajri, an analyst said.

Recent international economic reports, which showed that Gulf countries, including Kuwait, have saved financial surpluses in their budgets, would bring favorable reflections on the bourse, he said.

Adnan Al-Delemi, another analyst, said the sectors of real estate, services and investment had the lion's share in Thursday's trading at the bourse.

The notable thing is that the quantity of trade shares was so big, even though liquidity was static and leading companies gave a lukewarm response, he said.

For his part, Mohammad Al-Tarrah, an economist, opined that the bourse's trading during the week's sessions was so balanced that there were good purchasing operations.

Undoubtedly, reports on the approaching formation of a new government have positively affected investors' morale, he said.

KUNA