Kuwait Stock Exchange (KSE) continued to record losses, as the index closed the first day of the week in the negative territory. Yesterdays close took the index to a 7-months low level. The trend then was that the market was climbing up and had reached 2009 high of 8,371.10 on 3rd of June. The trend now is that the market is gripped by negative sentiments and since touching the years peak level, the index has plunged over 17%.
The KSE Price index closed (15th Nov) at 6,918.40 loosing 139.80, or 1.98%.
The market is currently governed more by the sentiments and less by the fundamentals, as the country is facing political instability.
In my view one should have a wait-and-watch approach, to see the outcome of Mr. Mislem's grilling of the PM, if any.
Fundamentally, the results declared by most of the companies are not in line with expectations. Hence, there is not enough news for the market to choose its direction, higher. Though, one can expect a short pullback but that will only be due to technical factors, as the market is trading below its 50D, and 200D Moving Average.
The strength of the market (RSI) is looking extremely oversold - RSI of 18 (14Days) and RSI of 29 (30Days).
In the long run, the index will see 7,150 as the resistant level, if it manages to breach this point, the index can move further higher to 7,350 and than to 7,500.
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