Reluctance to deal in leading stocks overwhelmed May trading
Lack of genuine trading in operating stakes was the main characteristic of the Kuwait Stock Exchange (KSE) performance in May due to dealers’ reluctance following absence of technical incentives, according to dealers.
Major speculators’ suspended activities were mainly to blame for the abysmal performance of the Kuwaiti bourse in May, and stock indexes mostly dwindled away owing to listed companies’ reluctance to disclose their financial findings, they told KUNA separately.
The stock trading in May was marred by several negative points, primarily hesitation to purchase leading shares and to resort to cheap shares, Hamad Al-Enezi said.
Cheap stocks are often demanded by investors, mainly directors of financial portfolios and investment funds, he added.
About-turn in May stock trading was mainly triggered off by dearth of technical incentives, restrictions on active speculators and investors’ designed failure to purchase operating stakes, Mohamed Al-Hajri said to KUNA.
Hassan Jamal, also a dealer, urged KSE officials to seek to find a fresh congenial atmosphere for leading market-makers in order to boost trading for all leading, medium and cheap shares.
Main indices of Kuwait Stock Exchange (KSE) closed on mixed board on Sunday, with the weighted index reading 492.18, losing 0.9 points.
The price index stood at 7,321.13, gaining 30.04 points, but the third main index, the KSX 15, settled at 1,201.61, shedding 7.07 points.
Source : KUNA Kuwait News agency