Khaberni -The volume of funds managed by the 27 Kuwaiti investment funds, licensed by the Capital Markets Authority, investing in the Kuwait Stock Exchange and the Gulf and Middle Eastern markets, increased by 3.63% to 1.16 billion dinars at the end of June compared to 1.12 billion dinars last May.
The liquidity of capital in the region, rising oil prices, and increased GDP, combined with growth in wealth, have provided investment tools capable of attracting this liquidity and meeting the desires of various investor segments, which led to an increase in the number of Gulf investment funds launched during the past period to benefit from the steady growth witnessed in the region's economies, especially since these funds are characterized by lower risks and higher investment returns.
Institutional Investment
Based on the semi-annual performance of local funds, professional institutional investment surpassed individual speculative transactions, especially during challenges and crises faced by the market due to increased tensions or due to the trade tariff war, and investment funds succeeded in achieving a positive performance despite the disturbances seen in many markets. This confirms the presence of good operational opportunities in the markets and reliable defensive stocks that have always been one of the main factors supporting performance indicators.
Economic reforms and the move towards diversifying income sources, as well as developing financial and regulatory systems in capital markets, in addition to global index reviews, have played a significant role in improving the invested funds, attracting more local and international investors, and encouraging investment funds to inject more money into the funds.
Local invested funds benefit from strong companies in various sectors such as banking, real estate, energy, and telecommunications, which continue to generate profits and interim cash distributions. There is also a desire among Kuwaiti funds to diversify their performance and investments within the region to capitalize on growth opportunities while minimizing risks.
Competition among Companies
Recently, some companies have launched new products and funds and moved towards obtaining licenses to establish funds, locally or abroad, and market them locally, which has contributed to attracting larger segments of investors, while investors anticipate the results of the first half for leading companies expected to enhance liquidity in the market.
Foreign Liquidity
The continuity of the inflow of foreign liquidity with calm growth and selective targeting leads to a sense of relief and optimism for a more prosperous future at the level of the financial markets in the region, with significant changes in the level of financial products and tools offered. This indicates that improved performance will be a criterion for continuity during the upcoming period. Undoubtedly, the strong appetite of banks to finance investment in securities with competitive interest ensures the continuation of market fuel and reassurance, and an increase in confidence, which will positively reflect on the performance of the funds and the money invested in them.
