Kuwaiti economists described the trading of shares in the banking sector enlisted in Boursa Kuwait as “stable” and most committed to seasonal disclosure. In separate statements to KUNA on Wednesday, the economists noted that applying the “governance” systems by these banks attracted more Kuwaiti and foreign traders to their shares, especially that they have a big solvency.
The net profits of Kuwaiti banks enlisted in Boursa Kuwait totaled about KD494 million (about US$1.6 billion) for the first six months of 2019. This is the highest number since 2007 with a growth rate of 8.4 percent compared to the same time in 2018. Trading with banking sector’s shares is seeing stability in the meantime, compared to shares of other enlisted sectors, said Advisor of Arzaq Capital Holding Company Salah Al-Sultan. Financial results of the banks grew after the global economic crisis, attracting foreign investors into the bourse, he added.
On his part, member of the board of Sorooh Investment Company, Suleiman Al-Wugayyan, says that managers of financial portfolios are keen on possessing bank shares. Domestic and external liquidities are attracted to the stock market due to the banks’ earnings and this trend has gained momentum due to the market upgrading by international rating agencies. Chairman of Kuwait Traders Association Mohammad Al-Tarrah affirmed that favoring of the banks’ stocks would proceed in the remaining period of the year, attributing this approach largely to Boursa Kuwait’s enlisting by international indices, namely Standard and Poor’s, Morgan Stanley and FTSE Russel. Moreover, Al-Tarrah says a recent decision by the Ministry of Commerce allowing foreigners to have larger stakes in the banks will lead to greater foreign liquidity inflow into the bourse.