Kuwait Stock Exchange Trend Score

Kuwait Stock Exchange (KSE)

Last: 5746.97, down 4.30 points

Kuwait Stock Exchange (KSE) is on the verge of testing its multiyear low at 5694 level. The Index is mega oversold without any hint of a turnaround on a medium to long term basis. The breach of 5694 on closing basis will induce further weakness in prices and we may see Index heading towards 5400 level. Major resistance zone is visible in the region of 5800-5900.

Out of the 15 stocks we cover in Kuwait, only ALMUTAHED, BOUBYAN, BURG, KPROJ and MABANEE are showing strength (with high Trend Score) while rest of the stocks are either showing strong down to lumpy trend. The charts are also showing patchy pattern mainly due to the fact that volumes have dried up after the persistent downward trend in prices.

Lack of volumes is a very big risk and investors are advised to trade only in liquid and fundamentally sound stocks to avoid liquidity risk in case of a further meltdown in prices.