August’s performance was less active compared with July’s performance. Traded value, i.e. Boursa’s liquidity declined alongside a negative performance regarding all indices. The Premier Market index decreased by -3.2%, Main Market index decreased by -1.9%, and the All Share Market index (the outcome of the two markets’ performance) by -2.9%. Also, AlShall index also declined -2.6%.
Boursa liquidity during August achieved a lower level than that of July’s liquidity. The traded value was KD 490.3 million, declining from KD 979 million liquidity in July, perhaps it was affected by the great decline in the global markets. The average daily trading value of August scored KD 27.2 million versus KD 42.6 million in July, reflecting a -36% decrease below July’s average. Traded value in the first eight months of 2019 (162 working days) scored KD 5.316 billion, with an average daily trading value of KD 32.8 million. This represents a 119.6% rise compared with the same average of the same period of 2018 at KD 14.9 million. It also rose by 94.7% 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 3 listed companies without any trades. As for liquid companies, 12 companies whose market value equals 4.5% of the listed companies’ value obtained nearly 6.9% 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 August 2019 was as follows:
The Premier Market (19 Companies)
It scored KD 386.4 million or 78.8% of Boursa liquidity, and 50% of its companies (9 companies) captured 84.3% of its liquidity and 66.4% of the entire Boursa liquidity. The other half of its companies (10 companies) captured what is left or 15.7% of its liquidity. Its liquidity concentration was high as 8 of its companies obtained 79.6% of its liquidity.
The Main Market (144 Companies)
It achieved KD 103.9 million or 21.2% of Boursa liquidity, and 20% of its companies obtained 83.4% of its liquidity while 80% of its companies obtained only 16.6% 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 39 thousand only, about 0.008% 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.