Boursa Kuwait needs ma­jor deals to re­store con­fi­dence

Kuwait Times - - BUSINESS -

The Boursa Kuwait, for­merly Kuwait Stock Ex­change, is in a dire need for big deals to re­store con­fi­dence to the mar­ket amid erod­ing con­fi­dence, two Kuwaiti econ­o­mists said yes­ter­day. Speak­ing to KUNA, they said that the bourse faced sev­eral prob­lems that lead to a re­luc­tance of mar­ket mak­ers. This affected neg­a­tively the con­fi­dence of deal­ers and the deals do not re­turn the needed in­cen­tives to the mar­ket, they added.

The Boursa Kuwait has been fac­ing a continued re­treat in terms of value and deals since the be­gin­ning of this year, Salah Al-Sul­tan, ad­viser at Arzak Cap­i­tal In­vest­ment Com­pany, said. He added that trans­ac­tions of Kuwait Food Com­pany (Amer­i­cana) helped the mar­ket re­gain some con­fi­dence. The bourse de­pends mainly on in­di­vid­u­als not on in­sti­tu­tional in­vest­ment, he noted. He called on the con­cerned bod­ies to dis­cuss and ad­dress the causes lead­ing to the drop in gen­eral per­for­mance in or­der to re­vive the econ­omy.

Mean­while, Chair­man and CEO of Al-Riyada Fi­nance and In­vest­ment Co Mo­han­nad Al-Sanea said the bourse is thirsty for such bar­gains to give con­fi­dence to deal­ers. There are a num­ber of op­er­at­ing com­pa­nies which have many at­trac­tive in­vest­ment ac­tiv­i­ties in­ter­nally and ex­ter­nally, he added. Ear­lier in the day, bench­mark of Boursa Kuwait ended trad­ing in the red zone. The price in­dex was down 18.85 points to stand at 5,309 points, the weighted in­dex was also down 1.42 points and the KSX 15 in­dex fell by 1.22 points. Value of trade was at KD 5 mil­lion while the vol­ume was 53.9 mil­lion shares done through 1,582 deals.

Stocks fall

Mean­while, the per­for­mance of bank­ing shares weighed on Saudi Ara­bia’s mar­ket in­dex yes­ter­day after the largest listed bank re­ported prof­its be­low an­a­lysts’ ex­pec­ta­tions, while in­dexes for other mar­kets in the re­gion also fell. Riyadh’s in­dex fell 1.1 per­cent as Na­tional Com­mer­cial Bank (NCB) tum­bled 5.6 per­cent after re­port­ing a third-quar­ter net profit of 1.96 bil­lion riyals ($523 mil­lion), down 1.6 per­cent from the same pe­riod of 2015. Three an­a­lysts had on av­er­age fore­cast a quar­terly profit of 2.31 bil­lion riyals. NCB, like most other Saudi banks that have al­ready re­ported quar­terly re­sults, cited higher costs, in­clud­ing a rise in im­pair­ments on fi­nanc­ings and in­vest­ments. The bank is a key lender to Saudi Ara­bia’s trou­bled con­struc­tion sec­tor.

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