Stock exchanges in the Gulf fell dramatically … 88.8 billion dollars “flew” in one session

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It was clear that the region’s equity markets were impacted by the steep falls in US and European equity markets last Friday, due to the impact of growing fears of monetary tightening by central banks and concerns that American economies and continent Europe will enter a state of economic slowdown that could reach recession, in addition to the drop in the price of oil at the end of the year, which last week fell to an 8-month low.

The Kuwait Stock Exchange General Index recorded the largest decline in Gulf market indicators yesterday, closing with a 2.69% drop, followed by the Saudi Stock Exchange, which fell by 2.61 percent, while the Stock Exchange fell by 2.61 percent. Qatar came in third with a 1.52 percent decline, followed by the Bahrain Stock Exchange, down 1.4 percent, followed by Dubai’s financial market by 0.72 percent, Abu Dhabi by 0.677 percent and Oman by 0. , 33 percent.

In terms of market value, the biggest losses in the Gulf were for the Saudi stock exchange, which in yesterday’s session lost $ 75.3 billion of its value, or about 84.8 percent of the total losses of the markets in the region, followed by the Abu Dhabi Stock Exchange with losses of $ 4.7 billion, while the Kuwait Stock Exchange came in third with losses in The market value of its listed companies amounted to approximately 1.18 billion dinars ( $ 3.9 billion).

The Qatar stock exchange lost about $ 3.3 billion of its market value, while the Dubai financial market lost about $ 1 billion and the Bahrain stock exchange lost about $ 400 million, while the stock exchange in Dubai lost about $ 400 million. Oman recorded the smallest losses, losing approximately $ 100 million from its market value.

steep descent

Locally, the Kuwait stock exchange saw a steep drop during its trading yesterday as the market value of total listed companies lost 1.184 billion dinars, or 2.69 percent, to close at the end of trading at 42.772 billion dinars.

Despite this month’s losses increase to 5.3 percent, the total market value of listed companies still maintains year-to-date gains of 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 disruptions (breaker) after the shares subsequently lost by more than 5% of their value. market, while trading breaks were spread 13 times in the first market and 126 times in the main market (repeated across multiple shares).

trying to defend

Despite the attempt by some portfolios to defend their shares and strategic positions through purchases, selling power prevailed in most cases, which resulted in the closure of 108 out of 130 shares that were included in the negotiations, while 14 shares they closed higher and 8 remained without a significant change in price. .

The general stock market index lost 200.04 points, or 2.69 percent, to close at the end of the session at 7,244.09 points, affected by the sharp decline in the shares of the first market, which lost 206.12 points , accounting for 2.48 percent, followed by the main market index, which fell 205.88 points, or 3.58 percent to close at 5544.46 points.

Strategic centers

Despite the significant decline recorded by the Kuwait Stock Exchange, strategic investment centers are seeing stability as many of the major owners and shareholders have refrained from selling and preferred to monitor and anticipate the developments that will be witnessed in the upcoming sessions.

Al-Rai monitored the stability of the ownership of foreign financial institutions in banks and primary companies, with the exception of the movements made by active external accounts as a daily stock of transactions and trading operations, while most of the sales were local.

Financial sources confirmed to Al-Rai that the relative drop in the price of oil had a psychological impact on dealers, underlining that the situation is still good, especially since the rates recorded that guarantee the realization of the surpluses for the state budget are still far from current prices (between 85 and 90 dollars per barrel).

He said the psychological impact of the decline in global markets was exaggerated, as 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 trading scene, stating that “traders are watching the steep decline in global financial markets and their psyche is affected.”

He pointed out that local economic conditions are seeing considerable stability, but the impact of the stock market is being imported from abroad in an often exaggerated way, noting that Kuwaiti companies are not very exposed to the more inflated global markets, where Recession fears are on the rise, but Kuwait is part of the market system The world is witnessing fluctuations due to various developments at various levels, including economic, financial, as well as political and military.

Absence of adults, makers and governors

The absence of major players and market makers from the Kuwait Stock Exchange trading scene was noted yesterday, including government portfolios, at a time when stocks are seeing random selling by individuals and portfolios, most of which local, with the absence of purchase of liquidity, initiatives and perhaps defensive moves by the owners of the main centers and shareholdings of the most important operating companies, which remained unchanged.

The biggest losses suffered by the Gulf stock exchanges in 2022: