7 positive factors that change the course of the stock market and restore it
  • The oil price jumps and the improvement in the results of banks and companies push the stock exchange to rise after breaking the correction wave
  • The stock exchange continues to attract qualitative listings… and is awaiting foreign inflows before the end of this month from “MSCI”

 

The Kuwait Stock Exchange enjoys several positive elements that make it ready to overcome the stage of the collective decline of its indices and variables that dominated the trading course throughout the sessions of the past week and incurred huge losses within a wide correction movement witnessed by the Gulf financial markets.

In this context, «alanba» monitored 7 positive factors that are expected to contribute to the exit of the Kuwaiti Stock Exchange from the cycle of decline and push it to resume its positive activity again, and they are as follows:

1- Many of the stocks listed in all sectors are now encouraging to buy after their noticeable decline during the correction wave that is about to end with the start of the relative improvement in the performance of global markets.

2- The stock market’s return to the upward path enhances the positive performance of Kuwaiti banks and companies that returned to achieving profit growth that exceeds what was achieved before the outbreak of the Corona pandemic, as the banks announced profits loaded with a growth of 51% at the end of the first quarter, amid expectations of an increase in their profits with raising interest, The continuation of growth comes as a continuation of the results of Kuwaiti banks and companies for the year 2021, where profits increased by 270%, with a total of 2.9 billion dinars.

3- Oil prices in the global market have witnessed great leaps to rise to the highest levels in 14 years, and therefore the overall economic activity is witnessing a remarkable improvement, which is clearly reflected on the stock market as it is the mirror that reflects the economic situation of the country.

4- The ability of the Kuwait Stock Exchange to attract quality listings that increase its capital value, as the stock exchange is preparing to list Ali Al-Ghanim and Sons Automotive Company. This qualitative listing will not be the last in light of the determination of those in charge of the stock exchange to attract more family companies that constitute an added value to the market.

5- Expectations of large foreign inflows at the end of this month in the Kuwaiti stock market, as Morgan Stanley Corporation (MSCI) decided a few days ago to add Gulf Bank to its emerging markets index in the semi-annual review of the Kuwait Stock Exchange indices, which will result in foreigners buying 131 million shares. With a value of $152 million, this is in addition to the inclusion of 4 other Kuwaiti companies in the SME index, which enhances confidence in the Kuwaiti Stock Exchange.

6- The Kuwaiti money market is the best attractive container for investments, which is reflected in the increase in the turnout of investors, whether local and foreign institutions or individuals, as it includes many promising investment opportunities.

7- The keenness of those in charge of the market to move forward in completing the development process by offering new investment tools in addition to what was recently developed, and these tools had a prominent role in raising liquidity rates to record levels after they were greatly reduced several years ago.

By Editor

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