Boursa Kuwait’s performance in 2019 was superior at the regional level and advanced at a global stock market level. “Al Joman Center” published a detailed report about disclosed ownerships regarding public institutions, and in this report we estimate the impact of positive performance on the portfolios of the most important four public institutions within the limits of the declared ownerships. Increased value is governed by price movement and the relative ownership movement.
The biggest value of the declared properties belonged to the “Kuwait Investment Authority-KIA”, whose equities in eight listed companies remained almost constant between the end of 2018 and the end of 2019. The value of its equities in those companies increased from KD 1,675 million to about KD 2,260 million by the closing of 2019. Growing by 34.9% in their investments or a KD 585 million increase in their value. “KFH” contributed by KD 429 million in the value growth, “Zain” company contributed by KD 151 million in the rise of that value, and “Warba Bank” contributed by KD 25 million in that value increase. Three out of the eight companies contributed by KD 30 million losses.
“KIA” holds 18.94% investment in the “Gulf Bank” and sold 16.08% in an auction during 2019 and achieved a KD 30 million profit which represents the difference between the share price of the “Gulf Bank” in its portfolio on 31/12/2018 and the selling price in July 2019 at 312 Fils per share (FPS).
The contribution of the “Public Institution of Social Security” to the value of its investments in “Boursa Kuwait” was not far from that of the “KIA”, but its proliferation was wider and included 31 companies with declared contributions. Value of the Institution’s investments at the end of 2018 was about KD 1,494 million and achieved 37.5% gains in the book value. Its investments at the end of 2019 scored KD 2,055 million, rising by KD 561 million. Share prices of 16 companies within its portfolio increased, while the share prices of 11 companies decreased, also declaring investment in 4 new companies during 2019 occurred. The largest increase in the value in its portfolio was achieved by “Ahli United Bank – Bahrain” by about KD 227 million, followed by “KFH” with about KD 110 million increase, then the “NBK” by about KD 99 million.
The third influential contribution to public institutions was to the “Public Authority for Minor Affairs”, with declared contributions in three companies at the end of 2018 in the amount of about KD 422 million which scored about KD 604 million by the end of 2019 by 43.1% gains. Two small companies lost about KD 5 million of their value but the investment in “KFH” achieved an increase in the book value by KD 187 million or by 46%.
The fourth contribution belonged to the “Kuwait Awqaf Public Foundation” which has only two announced contributions, one of which is major. Its investment at the end of 2018 was about KD 288 million and increased to about KD 420 million at the end of 2019, with a relative increase by 46% and increase in the capital value by about KD 132 million only, including about KD 130 million from “KFH”.
This means that the total increase in the value of the investments of the four entities in the shares of listed companies on “Boursa Kuwait” scored about KD 1,460 million with about 91% of that rise in value came from four companies: “KFH”, “Ahli United – Bahrain”, “Zain” and “NBK “.