By: Mohamad Farouk
Mubasher: The rise in the indices of Boursa Kuwait on Sunday was limited, with blue chips acquiring the majority of liquidity, capital market analyst and head of the training department at FXTM Company Nawaf Al Oun told Mubasher.
The banks segment acquired most of the market’s liquidity, as investors performed weak activity on small caps, affected by the geopolitical factors in the region, Al Oun added.
On Sunday, the market registered an increase in its volume when compared to last week’s trades. This performance reflects the lack of catalysts which endorsed the purchases of operating stocks that reached attractive prices; however, these stocks were not enough to boost the purchasing transactions, Al Oun noted.
He added that Boursa Kuwait needs further liquidity to endorse such rises after the decline in the three indices since the beginning of November; the benchmark price index lost nearly 500 points or 8% of its value.
Both the weighted and Kuwait-15 indices incurred losses of nearly 15% in the past two months due to active selling transactions on blue chips since mid-September, Al Oun said, adding that the two indices are witnessing correction movements and rebounds to make up for part of their losses.
The indices of Boursa Kuwait are expected to rise if the market’s volume and value continue to grow, reflecting an actual rebound to enhance the investors’ decisions, Al Oun told Mubasher.
The analyst said that the price index has been in volatility for more than ten sessions, between the levels 6,150 points and 6,300 points.
The weighted index targets the level 403 points, which represents a resistance, to 410 points and 418 points, respectively.
The Kuwait-15 index is in need for further entry transactions to reach 930 points as the first resistance level from which the index can reach 955 points.
