Kuwait Stock Exchange registered outstanding performance during the past week, as its main indices were able to surpass 2008s closing levels after compensating all of this years incurred losses. The price index exceeded both the 7,800 and 7,900 points levels in the weeks first three sessions, and then overcame the 8,000 points barrier; whereas the weighted index recorded a weekly growth that was close to double that of the price index, due to the evident concentration of this weeks trades on blue-chip stocks.
Last weeks active trades can be attributed to optimism associated with expected improvement in many of the listed companies results for the second quarter of the year in comparison to first quarter results due to KSEs registered growth. In addition, traders anticipation for a less straining relationship between the parliament and the government is another contributing factor, as it would reflect positively on the local economy, which in turn is currently being supported by the continued increase in oil prices.
On the other hand, the alternation of roles in leading trades between blue-chips and smaller stocks is one of the prominent positive aspects of the markets activity during the previous weeks, where it contributes to the balance of its overall performance and enables it to sustain recorded gains despite profit taking activities that will continue to occasionally affect the markets movement. Profit reaping activities played a significant role in last weeks activity; nevertheless, its effect did not prevail over KSE rising trend throughout the majority of the weeks sessions.
By the end of the week, the price index closed at 8,018.7 points, up by 3.16 percent from the week before closing, whereas the weighted index registered a 5.35 percent weekly gain after closing at 427.28 points. Thus, price indexs annual gains amounted to 3.03 percent and weighted indexs year-to-date growth reached 5.06 percent.
Kuwait inflation plunges to nine-year low
Kuwait's annual inflation rate fell to a modest 2.7 per cent in October - its lowest in nine years, despite robust consumer spending and some improvement in business sentiment, said a report.