The red color is in the Gulf and international markets
– “Saudi” has the highest loss with 75.3 billion dollars and 3.9 lost locally
– 139 trading intervals in Kuwait following repeated declines of several shares by more than 5%
– Strategic positions are stable, foreign ownership is stable, and most sales are local
The Gulf stock exchanges followed their international counterparts, as the color red prevailed in the financial markets in the region yesterday, to lose regarding 88.8 billion dollars of its market value in one session.
The declines recorded by the Gulf stock exchanges yesterday are the fourth in terms of the value of losses recorded in one day since the beginning of the year, according to the calculations of “Kamco Invest”.
It was clear that stock markets in the region were affected by the sharp declines recorded by the American and European stock markets last Friday, on the impact of the escalating fears of central banks tightening their monetary policies and concern that the economies of America and the European continent will enter a state of economic slowdown that may reach the stage of recession, in addition to the decline in oil prices at the end of the year. Last week it fell to an 8-month low.
The general index of the Kuwait Stock Exchange recorded the largest decline among the indicators of the Gulf markets, yesterday, as it closed with a decrease of 2.69%, followed by the Saudi Stock Exchange, which fell by 2.61 percent, while the Qatar Stock Exchange came third with a decline of 1.52 percent, followed by the Stock Exchange Bahrain, down by 1.4 percent, followed by Dubai Financial Market by 0.72 percent, Abu Dhabi by 0.677 percent, and Oman by 0.33 percent.
As for the market value, the largest losses in the Gulf were for the Saudi Stock Exchange, which lost 75.3 billion dollars of its value in yesterday’s session, or regarding 84.8 percent of the total losses of the region’s markets, followed by the Abu Dhabi Stock Exchange with losses of 4.7 billion dollars, while the Kuwait Stock Exchange came third with losses in The market value of its listed companies amounted to regarding 1.18 billion dinars ($3.9 billion).
The Qatar Stock Exchange lost regarding 3.3 billion dollars of its market value, while the Dubai Financial Market lost regarding one billion dollars, and the Bahrain Stock Exchange lost regarding 400 million dollars, while the Oman Stock Exchange had the least losses, losing regarding 100 million dollars from its market value.
steep drop
Locally, the Kuwait Stock Exchange witnessed a sharp decline during its trading yesterday, as the market value of the total listed companies lost 1.184 billion dinars, equivalent to 2.69 percent, to close at the end of trading at 42.772 billion dinars.
Despite the increase in losses this month to 5.3 percent, the total market value of the listed companies is still maintaining gains since the beginning of the year, equivalent to 1.9 percent.
The significant decline was reflected in the market prices of most of the listed shares, as yesterday’s session included 139 trading breaks (circuit breaker) following shares lost successively for percentages exceeding 5% of their market value, while the trading breaks were distributed by 13 times in the first market and 126 in the main market (Repeated on more than one share).
trying to defend
Despite the attempt of some portfolios to defend their shares and strategic positions through purchases, the selling power outweighed in most cases, which led to the closing down of 108 shares out of 130 that were included in the trading, while 14 shares closed higher and 8 remained without a significant price change. .
The general index of the stock exchange lost 200.04 points, or 2.69 percent, to close at the end of the session at the level of 7,244.09 points, affected by the clear decline in the shares of the first market, which lost 206.12 points, equivalent to 2.48 percent, followed by the main market index, which fell by 205.88 points, or 3.58 in percent to close at 5544.46 points.
Strategic centers
Despite the significant decline recorded by the Kuwait Stock Exchange, the strategic investment centers are witnessing stability, as many of the major owners and shareholders have refrained from selling and preferred to monitor and anticipate the developments that the upcoming sessions will witness.
Al-Rai monitored the stability of the ownership of foreign financial institutions in banks and leading companies, with the exception of the movements made by the active external accounts as a daily escort of transactions and buying and selling operations, while most of the sales were local.
Financial sources confirmed to Al-Rai that the relative decline in oil prices had a psychological impact on dealers, pointing out that the situation is still good, especially since the recorded rates that guarantee the realization of surpluses for the state budget are still far from the current prices (ranging between 85 and 90 dollars per barrel). .
She stated that the psychological impact of the decline in global markets was exaggerated, as the technical data differed from one market to another, but the result was a collective decline, especially for the Gulf markets.
Traders are waiting
Investment sources commented on the current scene of trading, saying that “traders are watching the sharp decline in global financial markets, and their psyches are affected.”
She stressed that the local economic conditions are witnessing remarkable stability, but the impact of the stock market is being imported from abroad in a way that is often exaggerated, noting that Kuwaiti companies are not highly exposed to the more inflated global markets, in which fears of recession are increasing, but Kuwait is part of the system of markets The world is witnessing fluctuations, due to various developments on several levels, including economic, financial, as well as political and military.
Absence of adults, makers, and government governors
It was noticed the absence of major players and market makers from the trading scene in the Kuwait Stock Exchange yesterday, including government portfolios, at a time when stocks are witnessing random selling by individuals and portfolios, most of which are local, with the absence of purchasing liquidity, initiatives and perhaps defensive moves from the owners of the main centers and ownerships of the operating companies. of major weights, which remained unchanged.
The biggest losses incurred by the Gulf stock exchanges in 2022:
$120.4 billion on May 12
$92.45 billion on June 12
$88.8 billion on September 25