Some speculative traders are misusing the current market debacle and the absence of market-makers, major traders, to make gains at the expense of small traders and the whole market, a number of market traders concurred.
In separate interviews with KUNA, several traders pointed out that speculators have been playing a negative role on the market since the start of 2014 in favor of some companies and to make quick gains.
“The market also suffers from several other factors the latest of which is the internal and external political development which pushed some traders to hold back from trading,” KSE trader and financial analyst Mohammad Al-Tarrah told KUNA.
“This has turned Kuwait Stock Exchange into market for speculation not investment,” Al-Tarrah regretted.
Though trader Faisal Al-Mutairi argues that speculation is important for the market, he admits that some speculators misusing the market’s difficult time to make profits.
“They pile huge pressure on small traders pushing them to random selling operations from which they make gains,” Al-Mutairi told KUNA.
“This raises concerns about the direction of the market in July which will coincide with the Holy fasting month of Ramadan, usually a period of market recess,” he wondered.
For his part, trader Ahmad Al-Hajiri believes that the market is in a desperate need of new legislations to rein in greedy speculators who are unwilling to help the market overcome current challenges.
“Only self-interest are driving force behind any decision they take on the market,” Al-Hajiri told KUNA, adding that such a kind of traders never hesitate to withdraw and move to other regional markets for bigger gains at any time.
Kuwait Stock Exchange ended Sunday trading in red territory with variance in the losses of each of the market indices amid the absence of the positive motivators that give the investors trust and assist in improving the investment atmosphere in the market.
The market was also dominated by random operations that caused the indicators to decline all over the session.
The board showed the weighted index at 481.2 points with a loss of 6.1 points, the price index at 7,142.42 points with loss of 101.71 points, and the KSX 15 at 1,173.15 points, shedding 18.35 points.
The trading session saw 3,798 deals worth KD 24.048 million, with some 151.45 million shares changing hands.
The sector indices board was also solid red upon closing.
Source : KUNA Kuwait News agency