The efficiency of the Kuwaiti capital market and the impact of some economic variables on the stock index | ||||
| Aswan Journal of Agricultural and Biological Sciences | ||||
| Article 5, Volume 1, Issue 1, July 2025, Page 40-48 PDF (1.36 MB) | ||||
| Document Type: Original Article | ||||
| DOI: 10.21608/ajabs.2025.400493.1009 | ||||
 View on SCiNiTO | ||||
| Author | ||||
Nawaf Hisham Rashid Hamad Saleh 
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| at Institute of African & Nile States Researches & Studies, Aswan University. | ||||
| Abstract | ||||
| Capital markets serve as a vital link between investors and companies, channeling savings into productive investments that drive national economic growth. This study investigates the efficiency of the Kuwaiti capital market and examines the impact of key economic variables—namely inflation, unemployment, and GDP growth—on the Kuwait Stock Exchange index. Using the Run Test to assess weak-form efficiency, the study found that stock price changes in the Kuwaiti market are random and independent, indicating weak-form efficiency. However, regression analysis revealed that GDP growth explains only 52.02% of the variations in the stock index, suggesting the presence of other non-economic influences on market behavior. Moreover, neither unemployment nor inflation rates showed a statistically significant individual impact on the index, with unemployment contributing a minor 19.30% to index fluctuations. These findings suggest that the Kuwaiti stock market does not fully reflect available economic information, and thus, has not achieved a moderate level of efficiency. Based on these results, the study recommends enhancing data systems, ensuring consistent trading activity, maintaining access to financial information, and incorporating additional variables in future analyses to better understand price determinants in the market. | ||||
| Keywords | ||||
| Capital market efficiency; inflation rate; unemployment rate; GDP growth rate | ||||
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