Gulf markets suffer $52.09 bln loss amid Middle East tensions
Agility plummets, leading declines in Boursa Kuwait
KUWAIT CITY, April 17: During Tuesday’s trading, most Gulf financial market indices experienced losses totaling $52.09 billion in market value, amidst growing concerns over the escalating conflict in the Middle East, reports Al-Qabas daily.
The Saudi market took the biggest hit with losses amounting to $41.84 billion, followed by the Abu Dhabi market with $3.48 billion, then the Kuwaiti market with $3.46 billion, and the Dubai market with $2.38 billion. However, both the Bahraini and Omani markets managed to record slight profits, as per KAMCO Invest data.
At the Kuwait Stock Exchange, Tuesday’s trading session ended in the red, influenced by various factors including regional security tensions and the timetable for distributing entitlements for certain shares, notably Agility.
The primary market index dropped by 2.75%, the general index fell by 2.54%, and both the main 50 and main indexes experienced declines of approximately 1.95% and 1.53%, respectively, compared to Monday’s levels.
Trading activity at the stock exchange totaled 100.26 million dinars, involving 364.67 million shares across 28.12 thousand transactions.
Agility led the list of declining stocks, with its share price plummeting by 44.36% to 286 fils, losing 228 fils. Conversely, 27 stocks saw increases, with Meydan leading the gains by 6.20%, while the prices of 8 stocks remained stable.
Agility’s trading activity was particularly notable, with a volume of 206.83 million shares worth 62.28 million dinars traded in 14.15 thousand transactions.
In response to the unusual activity in Agility’s shares, the company clarified to the Kuwait Stock Exchange that there were no developments warranting such activity, highlighting its previously disclosed interim dividend distribution on March 28, 2024.
Agility distributed interim dividends totaling 25.5 million dinars in cash, amounting to 10 fils per share after deducting treasury shares, and distributed in-kind dividends to shareholders worth 800 million dinars, representing 49% of Agility Global PLC shares.
The financial impact of these distributions will be reflected in the company’s statements, with the maturity date for entitlements set for April 18, 2024.
By the end of Tuesday’s trading, Agility’s stock remained active with a volume of 47.80 million shares and liquidity of 25.12 million dinars.
Looking at Agility’s performance, Raed Diab, Vice President of the Research and Investment Strategies Department at KAMCO Investment Company, attributed the significant decline in the Boursa Kuwait to adjustments in Agility Public Warehousing Company’s share price and its separation from its subsidiary, Agility Global, scheduled for listing on the Abu Dhabi Financial Market.
Diab also noted the market’s reaction to the dividend timetable of major stocks like Agility, alongside anticipation regarding the maturity of Kuwait Finance House (KFH) stock.
He emphasized the impact of geopolitical tensions on market sentiment, particularly after Iranian attacks, with investors closely monitoring potential escalations and their repercussions on oil shipments and global economy. Despite the decline, Diab highlighted the resilience of Gulf markets and the expectation for investors to consider strong fundamentals, such as robust profits in 2023 and anticipated growth ahead.
In the upcoming period, attention will focus on any developments regarding geopolitical tensions, global economic indicators, central bank decisions on interest rates, and the expected policies of incoming governments.