Boursa Kuwait faces challenges as it enters New Year

Boursa Kuwait faces numerous challenges as it enters the New Year 2024. Despite various attempts and opportunities associated with the market, it has struggled to absorb investor liquidity, necessitating an effective and radical approach to address these challenges. The market’s significance in the equation demands corrective measures, reports Al-Jarida daily.

The market is witnessing a gradual decline in attractiveness for both investment and speculation. The pool of companies suitable for speculation is diminishing due to associated risks leading to delisting or suspension. Blue-chip companies, targeted by a substantial amount of liquidity, are also narrowing down, with many saturated in ownership. Larger, stagnant companies experience unsatisfactory turnover rates due to stable ownership and a limited capital base compared to substantial liquidity-seeking opportunities. Yearly, substantial liquidity migrates in search of opportunities across the Gulf, regional, and global markets.

As the stock market approaches 2024, investment managers highlight a multitude of serious challenges. The market’s stagnation and lack of renewal and modernization have turned it into a reservoir freezing funds.

Upon closer inspection, it becomes evident that certain companies in the market, existing for 15 years, have not distributed profits to shareholders, relying solely on rumors or kinship relationships. Some of these companies report profits in the tens of thousands, a discrepancy not suitable for a listed company with millions in capital. The challenges prompting concern among investors and institutions require swift solutions, considering the fast-paced development of legislation, instructions, and regulatory laws.