Investigating the Relationship Between the Kuwait Stock Market and Its Marketing Sectors

Abstract

The main objective of this research is to measure the relationship between the Kuwait stock Exchange (KSE) index and its two marketing sectors after the new market classification. The findings of this research are important for economic policy makers as they need to know whether the new system (new classification) is efficient and to which level, in order to monitor the markets and intervene with appropriate measures. The investigated data are derived from the daily index of the financial Kuwaiti market and the daily closing price, number of deals and volume of shares traded of two marketing sectors (consumer goods and consumer services sectors) for the period starting from the 13^th of May 2012 till the 12^th of December 2016.  The results indicate a positive direct impact of the closing price, volume and deals indexes of the consumer goods and the consumer services companies on the overall KSE index, volume and deals of the Kuwaiti stock market (KSE).

Keywords: Correlation, Market Capitalization (MCAP), Kuwait Stock Exchange (KSE), Marketing sectors, Stock Performance, Regression Analysis.