Assistant Vice President of Research and Studies Department at the National Investments Company, Faisal Hussein, said: Kuwait Stock Exchange Indices It is going in a sideways direction during the current month, with the value of trading declining by 50 million Kuwaiti dinars, which reflects the existence of profit-taking operations.
He added in an interview with “Al-Arabiya”, today, Tuesday, that the Kuwaiti market, following the announcements of companies’ profits in the first half of 2022, has a state of calm and anticipation for any new data, and the repetitions of profitability reflect the Kuwaiti market companies achieving good profits in the first half of this year, especially banking sector.
Faisal Hussein explained that the Kuwaiti market is awaiting, during the coming period, some matters from the stock exchange and the regulatory authorities, including the inclusion of new investment tools and the inclusion of debt and sukuk markets, in addition to the issuance of the MSCI review during the current month.
He pointed out the possibility of upgrading the Kuwait Stock Exchange in the FTSE Russell indexes from emerging markets to developed ones, and all these factors will attract liquidity and foreign investors.
The Assistant Vice President of Research and Studies Department at the National Investments Company said that upgrading the market in these indicators will attract a certain segment of foreign investors and represent a good opportunity to recycle liquidity in various sectors.
Faisal Hussein added that the banks represent an opportunity for investment and according to the indicators that are still strong, with the support of the Central Bank of Kuwait, which adjusted the interest rate during the previous period to preserve the Kuwaiti dinar, and harmonize between the monetary and financial policies of the state.
He explained that in light of the rise in oil prices above the level of $ 100, this represents a positive matter for the state during the current year by achieving financial surpluses and thus pumping more funding to implement investments, and the government’s role in spending stimulates the non-cash sectors and will push companies to achieve more profits.
The Assistant Vice President of the Research and Studies Department at the National Investments Company said that the Kuwaiti dinar is linked to a basket of currencies, and the Central Bank looks at the Kuwaiti currency, whether it rises or falls when the US interest is raised, and in light of it, the interest is raised or lowered, which is a dynamic aspect in the monetary policy of the Kuwaiti Central and differs from The rest of the GCC countries.
