- 20% erosion in the market value of Kuwait Stock Exchange in 7 sessions only
The Gulf stock exchanges were unable to escape the storm of low oil prices and the ensuing stock collapses, to record fatal losses for the second consecutive session this week, and lose about $ 428 billion of their market value, which fell from $ 2.8 trillion at the end of the session Thursday, March 5, to reach 2.38 trillion dollars at the end of Monday’s session 9.
These big crashes of Gulf stock exchanges coincide with the collapse of international oil prices, which yesterday lost about 30% of their value and tumbled to levels of $ 30 a barrel, in the biggest decline from the Gulf War in 1991, and also the declines come amid continued outbreaks of the local and Gulf corn virus with the emergence of new cases , As well as its global spread.
For the second consecutive and third session in less than 10 days, the Kuwait Stock Exchange management took a decision yesterday to stop trading on the first market shares on the Kuwait Stock Exchange, in application of the trading breaks system, after the market index fell by more than 10%, knowing that the index fell at the beginning of the session By more than 5%, which prompted the Stock Exchange management to stop trading in the market for half an hour, and with the return of trading again, the losses worsened and the losses exceeded the maximum rate in one session, which led to the suspension of trading on the first market until the end of trading. With the continued sharp decline in market indicators, the huge losses continued at the level of the market value of the Kuwait Stock Exchange, as yesterday it lost 2.6 billion dinars (about 8.6 billion dollars), a decrease of 8.6%, to the value of 28 billion dinars (91.5 billion dollars), thus losing the value losses Market since the beginning of this month, that is, in 7 trading sessions, only 20%, which is a very large percentage in this limited number of sessions.
In the Gulf, the Saudi market recorded the largest losses in its Sunday and Monday sessions by about $ 306.5 billion, followed by the Kuwait Stock Exchange with losses of $ 17.7 billion, then the Qatar Exchange with losses of $ 17.6 billion, the Abu Dhabi market with $ 16.6 billion, the Dubai Financial Market with $ 10.7 billion, and the Bahrain Market with $ 2.4 billion, and the Amman market at $ 1.3 billion.
And at the end of trading yesterday, the indices of the regional stock markets declined significantly, as the Kuwait market index decreased by 10.3%, followed by the Qatar market with a loss of 9.7%, then the Dubai market by 8.3%, the Abu Dhabi market by 8%, then the Bahrain market by 5.9%, then the Muscat market by 5.6%, while the Saudi market ended yesterday’s session with losses of 7.7%.
In terms of market value, the market value of the Kuwait Stock Exchange declined by the end of Monday’s session 8.6%, followed by Qatar’s market by 9.5%, then Abu Dhabi market by 7.7%, Dubai market by 6%, then Bahrain’s market by 6.3%, then Muscat market by 5%, Whereas, the Saudi market ended the session yesterday on losses at market value by 6%.
Returning to the indicators and variables of the Kuwait Stock Exchange, the losses were significant at the level of the market value as mentioned above, as well as the flowing liquidity of the market witnessed a significant decline by 76%, as liquidity decreased to 11.6 million dinars from 49 million in the session of the day before yesterday, due to the cessation of the market index The first is after a short time has passed in the session, contrary to what happened in the session the day before yesterday.
The most declining stocks, which were Al-Watani, Baitak, Ahli United, and Zain and Agility, captured 4.9 million dinars, constituting 42% of the total, and the National had declined by 11.3% of its market value. 19% of the market value.
While the indicators recorded a decline at the level of the first market index by 10.3%, losing 591 points to fall to 5158 points, thus leaving the index that measures the performance of the largest Kuwaiti companies only about 150 points from the gains achieved over nearly two years.
The main market index declined by 4.2%, losing 187 points to 4,244 points, and the general index declined by 8.6%, losing 457 points to 4,849 points.
A catastrophic opening of Wall Street
Agencies: trading stopped on the American Wall Street after retreating 7%, following the opening of a catastrophic decline in all indicators, “Wall Street.
The Dow Jones US stocks lost 2,000 points at the opening.
It was decided to suspend trading on the American Stock Exchange immediately after the start of transactions yesterday, as the S&P 500 index decreased by 7%, which led to a 15-minute automatic suspension that was created after the global financial crisis in 2008 and 2009.
The US dollar reached its lowest level since November 2016 against the yen, after the suspension of trading in US stocks.
In global markets, Tokyo stocks fell more than 6%. While the Australian market fell more than 7% to erase $ 88 billion of its market value, which represents the worst day for Australian stocks since the global financial crisis.