January 2020 performance was more active compared with December 2019 performance. Traded value, i.e. Boursa’s liquidity increased with a positive performance regarding all indices. The Premier Market index increased by 0.82%, Main Market index increased by 0.24%, and the All Share Market index (the outcome of the two markets’ performance) by 0.68%. also, Alshall Index rose by 0.15%. this was achieved despite the fact that the high level of liquidity was significant when measuring the average daily trading value.Absolute liquidity of the Boursa during January achieved a higher level compared with that of December, reaching KD 869.5 million versus KD 853.5 million in December, a 1.9% rise. Average daily trading value scored KD 48.3 million in January (18 working days) reflecting a 30.2% rise above December’s average daily
trading value which was at KD 37.1 million (23 working days). The same average rose by 52.1% if we compared it with the average of entire 2019 that equaled KD 31.8 million and rose by 74.1% if compared with the same period when it scored KD 27.7 million in January 2019.
Liquidity directions in January indicate that half of the listed companies obtained only 0.7% of that liquidity including 50 companies which captured only 0.05% of that liquidity, and 16 listed companies without any trades. As for small liquid companies, 12 companies whose market capitalization equals 2.3% out of alllisted companies’ capitalization obtained nearly 11% of the Boursa liquidity. This means that major liquidity activity still deprives almost half of the listed companies from liquidity. On the contrary, it heavily favors companies with smaller value. Liquidity distribution among the three markets during January 2020 was as follows:
The Premier Market (19 Companies)
It scored KD 691.1 million or 79.5% of Boursa liquidity, and 50% of its companies (9 companies) captured 87.1% of its liquidity and 69.2% of the entire Boursa liquidity. The other half of its companies (10 companies) captured what is left or 12.9% of its liquidity. Its liquidity concentration was high as 4 of its companies obtained 66.9% of its liquidity.
The Main Market (144 Companies)
It achieved KD 178.3 million or 20.5% of Boursa liquidity, and 20% of its companies obtained 82.3% of its liquidity while 80% of its companies obtained only 17.7% 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 60.2 thousand only, or 0.007% 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. The Auction Market is to be deleted in early February 2020 and move its companies to the Main Market.