Trading Features at Boursa Kuwait – February 2020

Kuwait Clearing Company (KCC) issued its report regarding “Trading Volume According to Nationality and Category” for the period of 01/01/2020 to 29/02/2020, as published on the official website of Boursa Kuwait. The report indicated that individuals still form the largest trading category, where their total share decreased. They captured 40.8% of total value of sold shares (50.5% for January & February 2019) and 38.6% of total value of purchased shares (40.8% for January & February 2019). Individual traders sold shares amounting KD 568.677 million and purchased shares worth KD 537.615 million, with a net selling trading value of KD 31.063 million

The second largest contributor to the market’s liquidity is the institutions and companies sector which captured 31% of total value of purchased shares (28.4% for the same period of 2019) and 23% of total value of sold shares (19% for the same period of 2019). This sector purchased shares worth KD 431.770 million and sold shares worth KD 321.058 million, making it the only sector with a net purchased trading value of KD 110.712 million.    

The third contributor to market liquidity is the clients’ accounts (portfolios) sector which captured 29% of total value of sold shares (22.5% for the same period of 2019) and 25.4% of total value of purchased shares (24.2% for the same period of 2019). This sector sold shares worth KD 403.941 million and purchased shares worth KD 353.773 million, making it the most sector with a net purchased trading value of KD 50.168 million. 

The last contributor to liquidity is the investment funds sector which captured 7.2% of total value of sold shares (8.1% for the same period of 2019) and 5.1% of total value of purchased shares (6.7% for the same period of 2019). This sector sold shares worth KD 100.095 million and purchased shares worth KD 70.614 million, with a net sold trading value of KD 29.482 million.

Boursa Kuwait still continues to be a domestic Boursa with higher share for Kuwaiti traders as represent the biggest trading group. They sold shares worth KD 1.142 billion, capturing 81.9% of total sold shares (87.7% for the same period of 2019), and purchased shares worth KD 1.044 billion capturing 74.9% of total value of purchased shares (80.5% for the same period of 2019), becoming the only group with a net sold trading value of KD 98.230 million.

Percentage share of other investors out of total purchased shares value scored 19.3% (14% for the same period of 2019), and purchased shares worth KD 268.463 million and sold shares worth KD 193.999 million, 13.9% of total sold shares (7.2% for the same period of 2019); thus making their trading value the highest with a net purchased of KD 74.464 million. This means that the other foreign investors’ confidence in the Boursa Kuwait is higher.

GCC Investors’ share out of total value of purchased shares scored 5.8% (5.4% for the same period of 2019) worth KD 81.456 million, while value of sold shares scored 4.1% (5.1% for the same period of 2019) worth KD 57.690 million, with a net purchased trading value of KD 23.766 million.  

The relative distribution among nationalities differed slightly from its predecessor. Kuwaitis occupied 78.4%, other nationalities occupied 16.6% and GCC traders’ share captured 5%, versus 84.1%, 10.6% and 5.2% for Kuwaitis, other nationalities and GCC traders, respectively, for the same period of 2019. This means Boursa Kuwait remained domestic with most shares allocated to the local investor. The non-Kuwaiti investors from outside the GCC outweighed that from within the GCC states, and their trading along with GCC traders had a net purchased value compared with domestic traders, with the dominance of trading for individuals. 

Number of active accounts between the end of December 2019 and the end of February 2020 rose slightly by 0.03%, compared with a decrease by -5.1% between the end of December 2018 and the end of February 2019. Number of active accounts in the end of February 2020 was at 17,203 accounts or 4.3% of total accounts versus 16,741 accounts in the end of January 2020 and 4.2% of total accounts for the same month, rising by 2.8% during February 2020.