The traders' growing interest in small-capitalization stocks was the main driver of Kuwait stock market since the start of 2014 amid remarkable drop in trading on large-cap stocks due to the lack of catalysts, concurred several financial analysts.
In separate interviews with KUNA, the analysts said some portfolios and investment funds focus on small to med-cap shares have helped the market achieve some gains even with the low activity of large-cap stocks.
"The majority of investors have been focusing on small-cap stocks, whose value is below 100 fils each, since the beginning of the year. Now, they are showing even great interest in the micro-cap ones, whose value is below 50 fils," Financial Analyst Mohammed Al-Tarrah told KUNA.
"This is because of its low price and fast circulation pace." Financial analyst Adnan Al-Dulaimi echoed a similar view.
"It is very clear that the small-cap stocks are dominating the market," Al-Dulaimi told KUNA.
"For example, in today's Sunday's session, over 90 percent of the trading was on small and med-cap stocks and the remaining was on large-cap ones." "This shows that small-cap stocks are very popular among investors in Kuwait stock market," he said.
Meanwhile, Financial Analyst Hamad Al-Shammari said the Kuwaiti stock market is dominated by speculation rather than serious investment based on firms performance.
"The growing speculative behavior and the lack of technical catalysts pushed many of market makers to depart to rival Gulf markets," Al-Shammari told KUNA.
"Though the small-cap stocks are the now backbone of the market, the movements of large-cap stocks are most significant for the market." Kuwait Stock Exchange ended Sunday's trading on mixed board, with the price index in the green zone as it reached 7,392.18 points, gaining 41.84 points.
However, the weighted index stood at 492.45 points, losing 1.99 points and the KSX 15 reached 1,202.86 points, shedding 10.13 points.
Number of trades reached 5,337, while the total value of shares was KD 21,245,072.589 with a volume of 269,686,639.
Top gainers were (HUMANSOFT), (PEARL), (GPI), (FLEX) and (SECH). Top volume stocks were (GFH), (ABYAAR), (ALMADINA), (SENERGY) and (GPI).