Performance of Boursa Kuwait – November 2019

November’s performance was more active compared with October’s performance. Traded value, i.e. Boursa’s liquidity increased with a positive performance regarding all indices. The Premier Market index increased by 5%, Main Market index increased by 0.2%, and the All Share Market index (the outcome of the two markets’ performance) by 3.7%. Also, AlShall index also rose by 5%. Boursa liquidity during November achieved a higher level than that of October’s liquidity. The traded value was KD 514.8 million, rising from KD 503.8 million in October. The average daily trading value of November scored KD 25.7 million versus KD 21.9 million in October, reflecting a 17.5% increase above October’s average. Traded value in the first eleven months of 2019 (227 working days) scored KD 7.084 billion, with an average daily trading value of KD 31.2 million. This represents a 95.8% rise compared with the same average of the same period of 2018 at KD 15.9 million. It also rose by 85.2% 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 1% of that liquidity including 50 companies which captured only 0.2% of that liquidity, and 3 listed companies without any trades. As for small liquid companies, 12 companies whose market capitalization equals 4.7% out of all listed companies’ capitalization obtained nearly 7.8% 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 November 2019 was as follows:

The Premier Market (19 Companies)

It scored KD 364.6 million or 70.8% of Boursa liquidity, and 50% of its companies (9 companies) captured 83.9% of its liquidity and 59.4% of the entire Boursa liquidity. The other half of its companies (10 companies) captured what is left or 16.1% of its liquidity. Its liquidity concentration was high as 5 of its companies obtained 76.5% of its liquidity.

The Main Market (144 Companies)

It achieved KD 150.2 million or 29.2% of Boursa liquidity, and 20% of its companies obtained 80.7% of its liquidity while 80% of its companies obtained only 19.3% 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 8.6 thousand only, about 0.002% 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.