Performance of Boursa Kuwait – May 2020

May’s performance was mixed compared with April’s performance. Traded value, i.e. Boursa’s liquidity decreased with also a mixed performance regarding its indices. The Premier Market index rose by 1.3% alongside the All Share Market index that rose slightly by 0.4%. The Main Market index decreased by -1.8% and the BK Main 50 index also decreased by -3.6%. 

Boursa liquidity during May achieved a lower level than that of April’s liquidity. The traded value was at KD 441 million, decreasing from KD 747.4 million in April. The average daily trading value of May was KD 24.5 million versus KD 34 million in April, reflecting a 27.9% decrease below April’s average. Traded value in the first 5 months of 2020 (96 working days) totaled to KD 3.567 billion, with an average daily trading value of KD 37.2 million. This represents a 20.1% rise compared with the same average of the same period of 2019 at KD 30.9 million. It also rose by 17% 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 12 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 May 2020 was as follows:

The Premier Market (18 Companies)

It scored KD 389.1 million or 90.3% of Boursa liquidity, and half of its companies captured 91.1% of its liquidity and 82.2% of the entire Boursa liquidity. The other half of its companies captured what is left or 8.9% of its liquidity. Its liquidity concentration was high as 5 of its companies obtained 75.5% of its liquidity.

The Main Market (154 Companies)

It achieved KD 42.8 million or 9.7% of Boursa liquidity, and 20% of its companies obtained 88.6% of its liquidity while 80% of its companies captured only 11.4% 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.