Trading Features at Boursa Kuwait – August 2019

Kuwait Clearing Company issued its report regarding “Trading Volume according to Nationality and Category” for the period from 01/01/2019 to 31/08/2019 which is published on the official website of Boursa Kuwait. The report indicated that individuals still form the largest trading group and their contribution is rising in terms of selling and purchasing shares. They acquired 45.9% of total value of sold shares (38.1% for the first 8 months of 2018) and 41.5% of total value of purchased shares (38.8% for the first 8 months of 2018). Individual investors sold shares in the amount of KD 2.492 billion and purchased shares in the amount of KD 2.253 billion with a net trading of most sector selling, by KD 238.736 million. 

The second large contributor to market liquidity is the institutions and companies sector and their purchases declined alongside their sold shares. It acquired 30.2% of total value of purchased shares (31.3% for the same period of 2018) and 21% of total value of sold shares (25.7% for the same period of 2018). The sector purchased shares worth KD 1.642 billion and sold shares worth KD 1.140 million, becoming the only sector with net trading of buying by KD 502.008 million.

The third contributor is the clients’ accounts (portfolios) which captured 26.2% of total value of sold shares (23.3% for the same period of 2018) and 21.9% of total value of purchased shares (20.8% for the same period of 2018). This sector sold shares worth KD 1.421 billion and purchased shares worth KD 1.187 billion, with a net trading balance of sold shares by KD 233.600 million.

The last contributor to liquidity is the investment funds sector which acquired 6.9% of total value of sold shares (12.8% for the same period of 2018) and 6.4% of total value of purchased shares (9.2% for the same period 2018). The sector sold shares worth KD 376.880 million and purchased shares worth KD 347.209 million, with a net trading of selling by KD 29.671 million.

Boursa Kuwait still continues to be a local Boursa with Kuwaiti traders forming the largest trading group. They sold shares worth KD 4.618 billion capturing 85% of total sold shares (84.7% for the same period of 2018), and purchased shares worth KD 4.155 billion acquiring 76.5% of total value of purchased shares (77.9% for the same period of 2018). As such, their net trading balance was -most selling- by KD 462.208 million. This is an indication that local investors continue to reduce their investments in the local Boursa.

Percentage share of other investors, out of the total purchased stocks value scored 18.8% (16.4% for the same period of 2018). Purchasing stocks worth KD 1.023 billion and sold shares worth KD 548.401 million, 10.1% of total sold shares (10.3% for the same period of 2018); thus their net trading value was -the only purchasing- by KD 474.374 million. This means that the foreign investors’ confidence in the Boursa is increasing which indicates an increased appetite from outside the GCC region after the recent reforms.

GCC Investors’ share out of total value of sold shares scored 4.9% (4.9% for the same period of 2018) worth KD 263.380 million, while value of their purchased shares scored 4.6% (5.8% in the same period of 2018), worth KD 251.215 million. Their net trading was selling by KD 12.166 million.

Relative distribution among nationalities changed from its predecessor and scored 80.8% for Kuwaitis, 14.5% for traders from other nationalities, and 4.7% for GCC traders compared with 81.3%, 13.3% and 5.3% for Kuwaitis, other nationalities and GCC traders respectively, for the same period in 2018. This means Boursa Kuwait remained local with the major share for the local investor though its share is declining. There is more turnout from traders from outside the GCC region than their GCC counterparts. Dominance of trading is still for individuals. 

Number of active accounts between the end of December 2018 and the end of August 2019 rose by 8.4%, compared with a decline of -22.9% between end of December 2017 and end of August 2018. Number of active trading accounts in the end of August 2019 was at 15,779 or slightly higher than 4% of total accounts compared to 15,527 accounts in the end of July 2019, i.e. slightly lower than 4% of total accounts for the same month, a rise by 1.6% during August 2019.