Kuwaiti stocks lose nearly $4bn in first half of the year

Kuwait’s stock market retreated in the first half of 2026 as the regional conflict, weaker liquidity and softer oil prices curbed investor appetite.

The market lost nearly $4 billion in value in the first six months, with trading value down 22 percent year on year to KD9.8 billion ($32 billion), according to a Kuwait Investment Company report.

“With the start of 2026, the market lost some of its previous momentum,” the state-controlled KIC said.

This was “a result of profit-taking, growing fears of escalating geopolitical tensions, a noticeable decline in liquidity, weak oil prices and investors’ anticipation of companies’ financial results, which put pressure on market performance and increased volatility levels”.

Turnover rose to almost its highest levels in the first half of last year, KIC said.

This year the bourse was down about 2.3 percent despite a recovery in April. The market slumped again in May and June as regional tensions returned.

“It is normal to see stagnation in the market in such circumstances as investors become wary and activity by banks and other sectors recede,” said Ali Al Anzi, manager of the Al-Manakh economic consultancy in Kuwait.

Further reading:

• Drop in oil income widens Kuwait’s budget deficit
• Kuwait’s new taxes expected to lift non-oil income to record high
• Kuwait faces energy reckoning after Hormuz crisis