By: Mohamed Farouk
Mubasher: The decline witnessed on Sunday in Boursa Kuwait’s trades came in line with weak liquidity that has not reached KWD 1 million until an hour and a half passed since opening the session, technical analyst and trainer at FXTM Company, Nawaf Al Oun, told Mubasher.
On Sunday, the trades were impacted by the anticipation for forming the new Kuwaiti government, which is expected to be announced within less than 24 hours as reported by well-informed sources, Al Oun said.
He added that the stock market was also affected by the geopolitical conditions in the region, starting from the GCC rift until the recent events in Jerusalem.
Low liquidity has an influence on the benchmark price index which dropped more than 55 points to 6,130 points; the index is trying to preserve the support level of 6,140 points.
Al Oun expected the main index to break the resistance level of 6,230 points to keep rising to 6,355 points as a medium-term target.
If the price index breaks the support level of 6,130 points, the index will continue falling to 6,027 points, which will be the lowest level to rebound from in 2017, the analyst said.
As for the weighted index, Al Oun noted that it is facing a resistance at 404 points, while its current support level lies at 390 points and 383 points, respectively.
The Kuwait-15 index is witnessing the largest liquidity in 2017, with resistance of 903 points, and a support level at 887 points and 878 points, respectively.
Boursa Kuwait is forecast to continue the coming sessions with a volatile downward trend due to lower liquidity and trading volume, Al Oun said.
