Trading Features at Boursa Kuwait – April 2020

Kuwait Clearing Company (KCC) issued its report regarding “Trading Volume According to Nationality and Category” for the period of 01/01/2020 to 30/04/2020, as published on the official website of Boursa Kuwait. The report indicated that individuals still form the largest trading category, where their total shares decreased. They captured 39.1% of total value of purchased shares (40.1% First 4 Months 2019) and 37.8% of total value of sold shares (46.1% First 4 Months 2019). Individual traders purchased shares amounting KD 1.223 billion and sold shares worth KD 1.185 billion, with a net of most purchasing trading value of KD 38.444 million.

The second largest contributor to the market’s liquidity is the institutions and companies sector which captured 29.8% of total value of purchased shares (32.5% for the same period of 2019) and 29.3% of total value of sold shares (20.5% for the same period of 2019). This sector purchased shares worth KD 933.526 million and sold shares worth KD 915.891 million, with a net purchased trading value of KD 17.635 million.    

The third contributor to market liquidity is the clients’ accounts (portfolios) sector which captured 26.1% of total value of purchased shares (21.2% for the same period of 2019) and 25.2% of total value of sold shares (25.7% for the same period of 2019). This sector purchased shares worth KD 818.198 million and sold shares worth KD 788.594 million, with a net purchased trading value of KD 29.604 million. 

The last contributor to liquidity is the investment funds sector which captured 7.7% of total value of sold shares (7.6% for the same period of 2019) and 5% of total value of purchased shares (6.1% for the same period of 2019). This sector sold shares worth KD 241.486 million and purchased shares worth KD 155.803 million, with an only net sold trading value of KD 85.683 million.

Boursa Kuwait still continues to be a domestic Boursa with higher share for Kuwaiti traders as represent the biggest trading group. They purchased shares worth KD 2.406 billion, capturing 76.9% of total purchased shares (74.4% for the same period of 2019), and sold shares worth KD 2.368 billion capturing 75.6% of total value of sold shares (84.7% for the same period of 2019), becoming the most group with a net purchased trading value of KD 38.051 million.

Percentage share of other investors out of total sold shares value scored 19.5% (10.3% for the same period of 2019), and sold shares worth KD 609.823 million and purchased shares worth KD 543.224 million, 17.4% of total sold shares (20.8% for the same period of 2019); thus making their trading value the only with a net sold of KD 66.599 million. This means that the other foreign investors’ confidence in the Boursa Kuwait is becoming lower due to the current world crisis.

GCC Investors’ share out of total value of purchased shares scored 5.8% (4.8% for the same period of 2019) worth KD 181.498 million, while value of sold shares scored 4.9% (5% for the same period of 2019) worth KD 152.951 million, with a net purchased trading value of KD 28.548 million.  

The relative distribution among nationalities differed slightly from its predecessor. Kuwaitis occupied 76.2%, other nationalities occupied 18.4% and GCC traders’ share captured 5.3%, versus 79.5% for Kuwaitis, 15.6% for other nationalities and 4.9% for GCC traders, for the same period of 2019. This means Boursa Kuwait remained domestic with most shares allocated to the local investor and their share is decreasing. The non-Kuwaiti investors from outside the GCC outweighed that from within the GCC states with the dominance of trading for individuals. 

Number of active accounts between the end of December 2019 and the end of April 2020 declined by -9.1%, compared with a slight increase by 0.2% between the end of December 2018 and the end of April 2019. Number of active accounts in the end of April 2020 was at 15,631 accounts or 3.9% of total accounts versus 16,934 accounts in the end of March 2020 and 4.3% of total accounts for the same month, dropping by -7.7% during April 2020.