The Kuwait Stock Exchange continues to demonstrate its appeal and resilience, attracting liquidity amounting to approximately 10.2 billion dinars in 2023. This impressive performance is a testament to the strength of the Kuwaiti market, even in the face of global economic and geopolitical challenges.
As we approach the new year of 2024, the stock exchange is anticipating positive growth rates and increased trading activity. This optimism is supported by six key factors that contribute to the overall outlook of the Kuwaiti stock market.
Analyzing the annual performance of the stock market indices, we see that the primary market index experienced a decline of 7.9%, losing 638 points and closing at 7,477 points. Similarly, the main market index lost 0.5%, closing at 5,569 points, while the general index increased by 6.5%, closing at 6,817 points. These fluctuations reflect the dynamic nature of the stock market and the various factors that influence its performance.
Despite the decline in market indices, the overall market value of the Kuwait Stock Exchange decreased by approximately 14%, totaling 40.259 billion dinars at the end of 2023. This decrease can be attributed to several factors, such as the delisting of Ahli United Bank Bahrain shares, which were acquired by Kuwait Finance House, and market losses resulting from profit-focused sales operations. It is important to note that these mitigating factors help offset the decline and showcase the resilience of the Kuwaiti market.
The total liquidity in the Kuwaiti stock market during the year amounted to 10.2 billion dinars, showing a 32% decrease compared to the previous year. On a daily average, the liquidity reached 43 million dinars. Notably, leading stocks such as Kuwait Finance House (KFH), Watani, Agility, Zain, and Boubyan significantly contributed to the liquidity in the market. Their performance and attractiveness to investors played a crucial role in maintaining liquidity levels.
The stock market performance in 2023 was influenced by various factors, including the negative repercussions of the American banking crisis, a decline in global oil prices, a global interest rate hike, and regional geopolitical conditions. Despite these challenges, the Kuwait Stock Exchange indices closed the year on a positive note, with collective increases in the closing session of 2023.
The general market index rose by 0.45%, the first market index by 0.5%, and the main market index by 0.25%. These positive gains demonstrate the resilience and potential for growth within the Kuwaiti stock market. In the last trading session, the liquidity volume reached approximately 50.7 million dinars. The first market acquired 37.68 million dinars, while the main market received 13.02 million dinars in liquidity.
In conclusion, the Kuwait Stock Exchange has shown remarkable resilience and attractiveness to investors, even in the face of global economic and geopolitical challenges. The liquidity levels, performance of leading stocks, and positive gains in the stock market indices all contribute to the overall positive outlook for the Kuwaiti market in the upcoming year. As we move forward into 2024, it is clear that the Kuwait Stock Exchange continues to be a key player in the region’s financial landscape.
Source: TimesKuwait
