Thursday 12 February 2009

Kuwait Stock Exchange Performance for 2008 - February 2009

"In continuation of Global Investment House coverage on the Kuwait Stock Market, we have come out with Kuwait Stock Exchange Performance 2008



The year 2008 is considered one of the most turbulent years in stock exchanges around the world. Starting with the credit crunch and ending with the bankruptcy of Lehman Brothers, many similar events stirred a hornet’s nest all around the world. Even Kuwait, which was thought of being alienated from the world crisis, was negatively affected. Kuwait Stock Exchange (KSE) ended the year with the Global General Index declining to 206.46 points from 377.86 points recorded on Dec.31 2007, a decrease of 45.37% since the start of the year. Hence, the market also ended with a market capitalization of KD33.43bn from KD57.46bn in year-end 2007, a 41.82% decline. 2008 was considered a very bad year for the KSE in terms of values, trades and volumes. The downturn was broad based and various sectors performed poorly, though they all showed varying levels of downturn. The Insurance sector was the best performer last year, limiting its losses to a decrease of 9.77% Y-o-Y, to wrap up the Global Insurance Index at 59.90 points, as opposed to the Investment sector, which declined substantially by 56.97% to reach 174.28 point by the year end 2008. 2009 will be a challenging year for the market. The KSE is expected to become range-bound this year before going back to the bullish era. Also, revenues and profits will play a major role in determining the directions for the stock market. In 2009, any positive news will improve sentiments gradually, with oil prices settling above US$40 and government finances still very strong. The KSE is passing through a worldwide correction before going back to high levels.



In order to view the full report, kindly click on the headline."

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