March’s performance was mixed compared with February’s performance. Traded value, i.e. Boursa’s liquidity increased with a great negative performance regarding all indices. The Premier Market index dropped by -22.8%, Main Market index dropped by -14.4% and the Main Market 50 index dropped by -18.2%, the All Share Market index (the outcome of the two markets’ performance) declined by -20.6%. Also, AlShall index declined by -21.9%.
Boursa liquidity during March achieved a higher level than that of February’s liquidity. The traded value was at KD 986.8 million, rising from KD 522.3 million in February. The average daily trading value of March was KD 47 million versus KD 30.7 million in February, reflecting a 52.9% increase above February’s average. Traded value in the first quarter of 2020 (56 working days) totaled to KD 2.379 billion, with an average daily trading value of KD 42.5 million. This represents a 36.6% rise compared with the same average of the same period of 2019 at KD 31.1 million. It also rose by 33.8% 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 0.8% of that liquidity including 50 companies which captured only 0.1% of that liquidity, and 14 listed companies without any trades. As for small liquid companies, 12 companies whose market capitalization equals 5.5% out of all listed companies’ capitalization obtained nearly 7.5% 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 March 2020 was as follows:
The Premier Market (18 Companies)
It scored KD 893.3 million or 90.53% of Boursa liquidity, and half of its companies captured 90.50% of its liquidity and 81.90% of the entire Boursa liquidity. The other half of its companies captured what is left or 9.50% of its liquidity. Its liquidity concentration was high as 5 of its companies obtained 76.7% of its liquidity.
The Main Market (156 Companies)
It achieved KD 93.5 million or 9.47% of Boursa liquidity, and 20% of its companies obtained 82.8% of its liquidity while 80% of its companies captured only 17.2% 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 evolution with the rise of liquidity of any of its companies.