KSE’s largest decline in 2009

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Kuwait Stock Exchange witnessed the largest one-day decline in more than nine months. The index ended 3.6% lower at 7,664 points, this is the largest loss since September 15. Investors were seen selling on falling oil prices and worries that the second-quarter results may be disappointing.

Several traders cited lower liquidity during the summer months and predicted declines following the recent the rally prior to 2nd quarter closing. Soon after the Summer months the KSE would continue to experience even lower liquidity (historically) during Ramadan.

“The market is being driven by extremely low liquidity and there’s panic selling… It’s the summer, so things slow down and this is the start of a correction we haven’t seen for a while. The way the market is right now, it looks like it will continue.”
- Jassem al-Zeraei, National Bank of Kuwait Capital