Performance of Boursa Kuwait – April 2020

April’s performance was mixed compared with March’s performance. Traded value, i.e. Boursa’s liquidity decreased with a positive performance regarding all indices. The Premier Market index rose by 3%, Main Market index increased by 3.5% and the BK Main 50 index rose by 4.7%, the All Share Market index (the outcome of the two markets’ performance) rose by 3.2%. 

Boursa liquidity during April achieved a lower level than that of March’s liquidity. The traded value was at KD 747.4 million, decreasing from KD 986.8 million in March. The average daily trading value of April was KD 34 million versus KD 47 million in March, reflecting a 27.7% decrease below March’s average. Traded value in the first 4 months of 2020 (78 working days) totaled to KD 3.126 billion, with an average daily trading value of KD 40.1 million. This represents a 26.4% rise compared with the same average of the same period of 2019 at KD 31.7 million. It also rose by 26.2% when compared with the average of the entire previous year at KD 31.8 million.

Liquidity directions since the beginning of the year indicate that half of the listed companies obtained only 0.7% of that liquidity including 50 companies which captured only 0.1% of that liquidity, and 13 listed companies without any trades. This means that major liquidity activity still deprives almost half of the listed companies from liquidity. Liquidity distribution among the two markets during April 2020 was as follows:

The Premier Market (18 Companies)

It scored KD 685.5 million or 91.7% of Boursa liquidity, and half of its companies captured 90.3% of its liquidity and 82.8% of the entire Boursa liquidity. The other half of its companies captured what is left or 9.7% of its liquidity. Its liquidity concentration was high as 6 of its companies obtained 80.4% of its liquidity.

The Main Market (155 Companies)

It achieved KD 61.8 million or 8.3% of Boursa liquidity, and 20% of its companies obtained 88.8% of its liquidity while 80% of its companies captured only 11.2% 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 an upgrade with the rise of liquidity of any of its companies.