Trading Features at Boursa Kuwait – September 2019

Kuwait Clearing Company issued its report regarding “Trading Volume according to Nationality and Category” for the period from 01/01/2019 to 30/09/2019 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 44.9% of total value of sold shares (36.2% for the first 9 months of 2018) and 41% of total value of purchased shares (37.1% for the first 9 months of 2018). Individual investors sold shares in the amount of KD 2.779 billion and purchased shares in the amount of KD 2.537 billion with a net trading of selling, by KD 241.722 million. 

The second large contributor to market liquidity is the institutions and companies sector and their purchases declined alongside their sold shares. It acquired 30.4% of total value of purchased shares (34.6% for the same period of 2018) and 21.7% of total value of sold shares (28.1% for the same period of 2018). The sector purchased shares worth KD 1.884 billion and sold shares worth KD 1.342 billion, becoming the only sector with net trading of buying by KD 542.117 million.

The third contributor is the clients’ accounts (portfolios) which captured 26.2% of total value of sold shares (23.4% for the same period of 2018) and 22.3% of total value of purchased shares (20% for the same period of 2018). This sector sold shares worth KD 1.624 billion and purchased shares worth KD 1.380 billion, with a net trading balance of most sold shares by KD 243.954 million.

The last contributor to liquidity is the investment funds sector which acquired 7.2% of total value of sold shares (12.2% for the same period of 2018) and 6.3% of total value of purchased shares (8.3% for the same period 2018). The sector sold shares worth KD 446.894 million and purchased shares worth KD 390.453 million, with a net trading of selling by KD 56.441 million.

Boursa Kuwait still continues to be a local Boursa with Kuwaiti traders forming the largest trading group. They sold shares worth KD 5.230 billion capturing 84.5% of total sold shares (81.5% for the same period of 2018), and purchased shares worth KD 4.746 billion acquiring 76.7% of total value of purchased shares (74.8% for the same period of 2018). As such, their net trading balance was -most selling- by KD 483.681 million. 

Percentage share of other investors, out of the total purchased stocks value scored 18.7% (20% for the same period of 2018). Purchasing stocks worth KD 1.161 billion and sold shares worth KD 651.026 million, 10.5% of total sold shares (13.2% for the same period of 2018); thus their net trading value was -the only purchasing- by KD 509.821 million. This means that the other 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 5% (5.3% for the same period of 2018) worth KD 310.535 million, while value of their purchased shares scored 4.6% (5.2% in the same period of 2018), worth KD 284.395 million. Their net trading was selling by KD 26.140 million.Relative distribution among nationalities changed from its predecessor and scored 80.6% for Kuwaitis, 14.6% for traders from other nationalities, and 4.8% for GCC traders compared with 78.1%, 16.6% 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 investors and their share is increasing. Still, turnout from traders from outside the GCC region than their GCC counterparts, and the majority of the trading is still for individuals. 

Number of active accounts between the end of December 2018 and the end of September 2019 rose by 8.9%, compared with a decline of -23% between end of December 2017 and end of September 2018. Number of active trading accounts in the end of September 2019 was at 15,857 or 4.04% of total accounts, compared to 15,779 accounts in the end of August 2019, i.e. 4.03% of total accounts for the same month, a rise by 0.5% during September 2019.