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Factors Affecting the Performance of Kuwait Stock Market

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  • Ebrahim Merza
  • Sayed-Abbas Almusawi

Abstract

This paper aims at finding the effective factors that influence three sectors in Kuwait stock exchange market (KSE) in addition to the whole stock market. The three sectors are banking, real estate and insurance sectors. The paper measures KSE performance through the average share prices calculated on a quarterly basis starting from 2005 until first quarter of 2015. It is found that each sector behaves differently towards macroeconomic variables. The most important determinants for the KSE overall market performance were found to be gold price and the deposits rate. Individually, the banking sector is influenced by consumer price index, interest rate on loans, oil price and gold price. The insurance sector is influenced by money supply, residential real estate price and oil price. The real estate sector is influenced by the exchange rate with respect to US dollars, interest rate on loans, oil price and gold price.

Suggested Citation

  • Ebrahim Merza & Sayed-Abbas Almusawi, 2016. "Factors Affecting the Performance of Kuwait Stock Market," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(5), pages 1-23, September.
    • Handle: RePEc:ibn:jsd123:v:9:y:2016:i:5:p:23
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    References listed on IDEAS

    as
    1. Pramod Kumar, Naik & Puja, Padhi, 2012. "The impact of Macroeconomic Fundamentals on Stock Prices revisited: An Evidence from Indian Data," MPRA Paper 38980, University Library of Munich, Germany.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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