Performance of Boursa Kuwait – July 2019

July’s performance was more active compared with June’s performance. Traded value, i.e. Boursa’s liquidity rose alongside a positive performance regarding all indices. The Premier Market index gained 5.8%, Main Market index increased by 2.4%, the All Share Market index (the outcome of the two markets’ performance) gained 4.9%. Also, AlShall index also gained 4.8%. 

Boursa liquidity during July achieved a higher level than that of June’s liquidity. The traded value was KD 979 million, rising from KD 660.2 million liquidity in June. The average daily trading value in July scored KD 42.6 million versus KD 36.7 million in June, reflecting a 16% increase above June’s average. Traded value in the first seven months of 2019 (144 working days) scored KD 4.825 billion, with an average daily trading value of KD 33.5 million. This represents a 135.5% rise compared with the same average of the same period of 2018 at KD 14.2 million. It also rose by 98.9% when compared with the same average of the entire previous year at KD 16.8 million.

Liquidity directions since the beginning of the year indicate that half of the listed companies obtained only 0.8% of that liquidity including 50 companies which captured only 0.1% of that liquidity, and 4 listed companies without any trades. As for liquid companies, 12 companies whose market value equals 1.5% of the listed companies’ value obtained nearly 6.7% of the   Boursa   liquidity.   This   means  that 

major liquidity activity still deprives almost half of the listed companies from liquidity. On the contrary, it favors companies with smaller value. Liquidity distribution among the three markets during July 2019 was as follows:

The Premier Market (19 Companies)

It scored KD 764.7 million or 78.1% of Boursa liquidity, and 50% of its companies (9 companies) captured 88.7% of its liquidity and 69.3% of the entire Boursa liquidity. The other half of its companies (10 companies) captured what is left or 11.3% of its liquidity. Its liquidity concentration was high as 6 of its companies obtained 76.1% of its liquidity.

The Main Market (144 Companies)

It achieved KD 214.2 million or 21.9% of Boursa liquidity, and 20% of its companies obtained 90.1% of its liquidity while 80% of its companies obtained only 9.9% of its liquidity. It is good to recall that its companies’ weak liquidity was the primary factor for their classification within the Main Market which is open for evolution with the rise of liquidity of any of its companies.

Auctions Market (12 Companies)

It captured KD 58 thousand only, about 0.006% of the Boursa liquidity which is within anticipation. The main goal is to give those companies a liquidity regulating outlet even if they are left without any trading except at remote intervals. We may witness a single surge in their trading value every now and then.