The market shed 138 points in the price index and 6.4 points in the weighted index. Most stocks ended in the red zone. The decline was mainly due to slumping global markets sparked by the Euro saga.
The Kuwait SE price index broke the 7,000 levels and it seems that it is heading south to retest the 6,500 levels, thus, erasing all gains since Q4 2009. What is significant about the 6,500 levels? It is the one year low, and it is the lowest level we’ve reached since the beginning of the financial crisis; meaning that it will bring us back to Q1 2009. Major indices registered record gains in 2009, however, our beloved Kuwait SE index is still lagging.
Whats wrong with the once most prosperous economy in the region?
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saud – nice chart but i find issue with your characterization of the KSE as *our* beloved: maybe yours but not mine =)
update: the market’s up 102 points so far on a price weighted basis but you still can’t turn a donkey into a horse…
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What’s wrong with it:
1) Little liquidity
2) Relatively high concentration of retail investors and consequently relatively less institutional, who supposedly buy and understand fundamentals more so than individuals
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Saud Reply:
May 10th, 2010 at 11:36 pm
I think the main issue here is the paper companies that are highly speculative and have high betas.
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Lack of transaprency in the enire system is to be blamed for this lag.
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