By: Mohamed Farouk

Mubasher: The reinstatement of US sanctions against Iran’s oil shipments has negatively affected most of the GCC bourses at Tuesday’s close.

 The tension between the two nations pushed down Boursa Kuwait by the end of the mid-week session.

The All-Share Market index fell 26.55 points, or 0.46%, to close at 5,722.3 points, while the Premier and Main markets inched down 0.38% and 0.69%, respectively.

The war rhetoric between Iran and the US, which was translated into decisions by the two nations, is expected to weigh on the region, capital market analyst Nezar Yununs told Mubasher.

The US economic sanctions against Iran may drive the Asian nation to close the Strait of Hormuz which in return will impact negatively on the oil market, Yunus added.

The analyst further noted that not only Kuwait will be affected, but these negative decisions will weigh on all the GCC bourses.

From a technical perspective, Yunus noted that the decline in Boursa Kuwait on Tuesday wasn’t uncanny due to the US-Iran tension, while the only positive factor in the bourse was the thin trading volume.

The technology sector led losers with 27%, while the consumer services sector topped gainers with 0.5%.

Automated Systems’ stock tumbled 27%, while the stock of Real Estate Trade Centers (Marakez) jumped 8.9%.

Liquidity fell 22% to KWD 27.11 million on Tuesday, from KWD 34.72 million, while trading volume decreased by 20.6%, reaching 154.08 million shares, compared to 193.97 million on Monday.

The National Bank of Kuwait’s (NBK) stock, down 0.54%, topped the market in terms of liquidity with KWD 6.24 million, while Aayan Leasing and Investment’s stock, which fell 2.75%, generated the highest trading volume with 21.17 million shares.

Translated by: Mohammad Hesham Azab