By: Mohamed Farouk

Mubasher: The indices of Boursa Kuwait witnessed a mixed performance at the end of Sunday’s session, said technical analyst Nawwaf Al-Awn told Mubasher.

He noted that the Premier and All-Share markets surged while the Main Market index retreated after an early hike on the back of profit-taking transactions on most small-cap stocks.

Small-cap stocks have achieved good profits over the previous short period, Al-Awn revealed, adding that the main market index met the positive expectations after its gains last week, despite its retreat on Sunday.

The bourse’s liquidity has seen an all-time high on Sunday, after its value registered following the upgrade of Boursa Kuwait to FTSE Index on 20 December 2018, Al-Awn added.

The Premier Market, especially the blue-chip equities, has witnessed heavy trading since the opening of Sunday’s session, which reflects the Premier Market’s domination of early trades despite the low number of traded stocks, compared to the trading of the Main Market, Al-Awn noted.

Since the last week, the Premier Market stocks have been and are still eyed by investors through accumulation deals, which gripped small and medium-sized share transactions, the analyst said. 

The retreat of the accumulation deals within a limited price range for periods ranging between six months to a year gives an impression about the rising trends which will have great demand from these stocks for a period not less than 6 months as expected, making the volume of expected gains very large as compared to these stocks, he explained.

These expected gains came alongside the predictions of the return of a large number of speculators who see investment opportunities on the short- and medium terms, especially in the small-sized stocks which are expected to announce strong profits and dividends, Al-Awn said.

Boursa Kuwait’s trading movement is expected to continue with a larger focus on the small stocks in the coming period, leading most traders, especially small investors, to concentrate on the Main Market firms, in light of the approaching 2018 earnings statements, Al-Awn told Mubasher.

Al-Awn projected Boursa Kuwait’s All-Share index to continue its gains for the coming period, particularly after surpassing 5,175 points to hover over a resistance of 5,200 and 5,290 points, marking the highest level achieved by the All-Share index since its launch in April 2018.

The current support for the Premier Market index stands at 5,330 points, the analyst said.

As for the promising Main Market index, Al-Awn noted that the index targets to stabilise at 4,765  points, as the index managed to reach 4780 points on Sunday.

Translated by: Zeinab Adel