Performance of Boursa Kuwait – February 2020

February’s performance was less active compared with January’s performance. Traded value, i.e. Boursa’s liquidity decreased with a negative performance regarding all indices. The Premier Market index dropped by -4.3%, Main Market index dropped by -3.1%, and the All Share Market index (the outcome of the two markets’ performance) by -4%. Also, AlShall index also declined by -4.5%. On the 9th of February 2020, Boursa Kuwait removed the Auctions Market and listed its companies in the Main Market. Also, on the same day Boursa Kuwait launched the Boursa Kuwait Main Market 50  Index (BK Main 50), which is a new market capitalization weighted index that will reflect the top 50 liquid companies in the Main Market.

Boursa liquidity during February achieved a lower level than that of January’s liquidity. The traded value was at KD 522.3 million, declining from KD 869.5 million in January. The average daily trading value of February was KD 30.7 million versus KD 48.3 million in January, reflecting a -36.4% decrease below January’s average. Traded value in the first two months of 2020 (35 working days) totaled to KD 1.392 billion, with an average daily trading value of KD 39.8 million. This represents a 47.8% rise compared with the same average of the same period of 2019 at KD 26.9 million. It also rose by 25.2% when compared with the same 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 1% of that liquidity including 50 companies which captured only 0.1% of that liquidity, and 16 listed companies without any trades. As for small liquid companies, 12 companies whose market capitalization equals 2.2% out of all listed companies’ capitalization obtained nearly 10.5% 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 two markets during February 2020 was as follows:

The Premier Market (18 Companies)

It scored KD 388.2 million or 74.3% of Boursa liquidity, and half of its companies captured 90.1% of its liquidity and 66.9% of the entire Boursa liquidity. The other half of its companies captured what is left or 9.9% of its liquidity. Its liquidity concentration was high as 4 of its companies obtained 73.2% of its liquidity.

The Main Market (156 Companies)

It achieved KD 134.1 million or 25.7% of Boursa liquidity, and 20% of its companies obtained 76% of its liquidity while 80% of its companies captured only 24% 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.