By: Mahmoud Gamal
Kuwait – Mubasher: Bourse Kuwait is expected to continue the volatile upward performance during 2017 in line with the anticipation of pumping new liquidity due to the return realized from Americana’s deal as well as applying the OPEC decision to decrease oil production, analysts told Mubasher.
Oil prices have revived as OPEC’s decision to shrink oil output will be implemented in January, backing the Kuwaiti shares during 2017, capital market analyst Abdullah Al-Zamel said.
Investors are expected to focus on blue chips with attractive dividend payout in the first half of the coming year, especially during February in which companies announce their dividend distribution, the analyst said.
He noted that traders are also expected to focus on small companies with cash return above 5%.
Al-Zamel clarified that Boursa Kuwaiti posted a rise of 10% during the fourth quarter of 2016, endorsed by the growing oil prices, the positive expectations for the OPEC meeting which was held in December, and the increasing number of merger and acquisition deals.
The UAE Adeptio acquisition of Americana was the top among other acquisition deals witnessed in the market, Al-Zamel said, highlighting that 30% of the liquidity pumped into the Kuwaiti banks participated in Americana’s deal will back Americana stock in the beginning of 2017.
On the technical level, the benchmark index of Boursa Kuwait is expected to see active performance that will push it to reach key selling levels at 5,800 and 5,900 points in the first weeks of 2017, technical analyst Mohamad Sonbol said.
Sonbol noted that the price index is likely to target 6300, 6700, and 7000 points respectively, leading to a long-term upward trend instead of being at a medium level.
Translated by: Ingy ElSafy
