KSE gains favorable incentives in week's trading

06/02/2015 06:36 AST

The hike in Kuwait Stock Exchange (KSE) trading this week was the outgrowth of a set of positive incentives, primarily flowing corporate disclosure reports on 2004's financial performance, according to Kuwaiti economists.

The obvious rise in Gulf stock exchanges and the recovery of international oil prices are also involved, economists told KUNA separately on Thursday.

The KSE's performance this week witnessed several key events, chiefly the increase in the resistance level up to 6,700 points in Wednesday's stock closing, MENA Economic and Financial Consulting General-Manager Adnan Al-Dulaimi told KUNA.

The successive hike in world oil prices has largely contributed to the market performance in general and specialized companies in particular, he said.

The disclosure of corporate financial statements for 2014, which were generally excellent, has led to a wave of optimism among dealers, especially small ones, he pointed out.

For his part, Kuwait Dealers Association Chairman Mohammad Al-Tarrah said the market is still set to see further rises thanks to corporate profits, primarily bank ones, and that's why liquidity levels are now up in the vicinity of KD 30 million.

This week's trading sessions were marked by selective buying that overwhelmed the general performance, and high demand for operating and cheap shares, he said.

The clear-cut improvement in the local situation, especially recent government decisions supporting the State budget, and execution of more development projects are major technical incentives, he added.

Kuwait Stock Exchange (KSE) indices settled on mixed boards at end of Thursday's session with the Weighted index gaining 0.27 points, to stand at 447.77 points, while the Price index went down by 8.34 points to reach 6,700.06 points, and the KSX 15 index went up by 0.38 points to read 1,085.81 points.

The KSX is a tradable, weighted index of the capital value, comprising 15 major companies in terms of liquidity. Its components are revised every six months.

KUNA