September’s performance was mixed compared with August’s performance. Traded value, i.e. Boursa’s liquidity increased but with a negative performance regarding all indices. The Premier Market index decreased by -5.4%, Main Market index decreased by -1.6%, and the All Share Market index (the outcome of the two markets’ performance) by -4.4%. Also, AlShall index also declined -5.4%.
Boursa liquidity during September achieved a higher level than that of August’s liquidity. The traded value was KD 749.9 million, rising from KD 490.3 million in August. The average daily trading value of September scored KD 34.1 million versus KD 27.2 million in August, reflecting a 25.1% increase above August’s average. Traded value in the first nine months of 2019 (184 working days) scored KD 6.066 billion, with an average daily trading value of KD 33 million. This represents a 103.9% rise compared with the same average of the same period of 2018 at KD 16.2 million. It also rose by 95.6% 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 0.8% of that liquidity including 50 companies which captured only 0.1% of that liquidity, and 3 listed companies without any trades. As for small liquid companies, 12 companies whose market capitalization equals 6.9% out of all listed companies’ capitalization obtained nearly 4.7% 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 September 2019 was as follows:
The Premier Market (19 Companies)
It scored KD 635.3 million or 84.7% of Boursa liquidity, and 50% of its companies (9 companies) captured 88.9% of its liquidity and 75.3% of the entire Boursa liquidity. The other half of its companies (10 companies) captured what is left or 11.1% of its liquidity. Its liquidity concentration was high as 5 of its companies obtained 73.7% of its liquidity.
The Main Market (144 Companies)
It achieved KD 114.6 million or 15.3% 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 7.1 thousand only, about 0.001% 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.