Kuwait market tanks as new virus fears rattle investors

Kuwait stocks swooned Sunday, tracking the slide in regional peers, as fears over new virus variant spooked the investors. Investors were uncertain whether the variant could potentially reverse months of progress at getting the COVID-19 pandemic under control.

The All Stocks Index dived 199.47 points to 6,928.74 pts in a broad decline, the biggest single day drop since March 2020. The Premier Market saw a brutal flooring as it tumbled 207.17 pts to 7,512.80 points while Main Market sank 188.08 pts. The BK Main 50 plunged 205.48 points to 5,957.22 pts.

Meanwhile, the volume turnover rebounded past the 400 million mark following the two-day drop. Over 443 million shares changed hands – a 102 pct jump from Thursday. All sectors closed in the red turf. Consumer Derivatives plummeted 5.54 percent, the worst performer of the day while Real Estate dipped 4.62 percent, the second biggest loser.

Financial Services topped the volume with 208.39 million and Banking sector was ahead in value with KD 35.63 million. Among the prominent losers, sector bellwether National Bank of Kuwait slid 22 fils to 995 fils after pushing 5.4 million shares and Kuwait Finance House dived 20 fils to 814 fils with brisk trading .

Investors pressed the panic button over reports of a new and possibly vaccine-resistant coronavirus variant. The discovery led to fears that the new strain could fuel outbreaks in many more countries, straining health systems, potentially evading vaccines and complicating efforts to reopen economies and borders.

Scientists say B.1.1.529 carries many mutations in its spike protein, which plays a key role in the virus’ entry into cells in the body. It’s also what is targeted by vaccines.