Trading Features at Boursa Kuwait – January 2020

Kuwait Clearing Company issued its report regarding “Trading Volume according to Nationality and Category” for January 2020 which is published on the official website of Boursa Kuwait. The report indicated that individual still form the largest trading group and their contribution is declining in terms of 

selling and purchasing shares. They acquired 42.5% of total value of sold shares (50.7% for January 2019) and 38.5% of total value of purchased shares (39.5% for January 2019). Individual investors sold shares in the amount of KD 370.036 million and purchased shares in the amount of KD 335.315 million with a net trading of selling by KD 34.721 million.

The second largest contributor to market liquidity is the institutions and companies sector, their contribution in purchases rose alongside their sold shares. It acquired 31.4% of total value of purchased shares (29.3% for the same period of 2019) and 22.3% of total value of sold shares (17.7% for the same period of 2019). The sector purchased shares worth KD 273.773 million and sold shares worth KD 193.944 million, becoming the only sector with net trading of purchasing by KD 79.829 million.

The third contributor is the clients’ accounts (portfolios) and their contribution rose in terms of selling but their purchases slightly declined. This sector captured 28.9% of total value of sold shares (24.6% for the same period of 2019) and 24.3% of total value of purchased shares (24.4% for the same period of 2019). This sector sold shares worth KD 251.715 million and purchased shares worth KD 211.841 million, with a net trading balance of most sold shares by KD 39.873 million.The last contributor to liquidity is the investment funds sector and their contribution dropped, it acquired 6.4% of total value of sold shares (6.9% for the same period of 2019) and 5.8% of total value of 

purchased shares (6.8% for the same period 2019). The sector sold shares worth KD 55.519 million and purchased shares worth KD 50.285 million, with a net trading of selling by KD 5.234 million.

Boursa Kuwait still continues to be a local Boursa with Kuwaiti traders forming the largest trading group. They sold shares worth KD 725.110 million capturing 83.2% of total sold shares (89% for the same period of 2019), and purchased shares worth KD 644.207 million acquiring 73.9% of total value of purchased shares (80.6% for the same period of 2019). As such, their net trading balance was the only sector selling by KD 80.903 million.

Percentage share of other foreign investors, out of the total purchased shares value scored 18.9% (13.9% for the same period of 2019). Purchasing shares worth KD 164.755 million and sold shares worth KD 108.477 million, 12.5% of total sold shares (6.1% for the same period of 2019); thus their net trading value was -the most purchasing- by KD 56.278 million. This means that the other foreign investors’ confidence in the local Boursa is higher and increasing.

GCC Investors’ share out of total value of purchased shares scored 7.1% (5.5% for the same period of 2019) and worth KD 62.252 million, while their contribution out of sold shares was at 4.3% (4.9% in the same period of 2019), worth KD 37.627 million. Their net trading was purchasing by KD 24.624 million.Relative distribution among nationalities changed from its predecessor and was at 78.6% for Kuwaitis, 15.7% for traders from 

other nationalities and 5.7% for GCC traders, compared with 84.8%, 10% and 5.2% for Kuwaitis, other nationalities and GCC traders respectively, for the same period in 2019. This means Boursa Kuwait remained local with the major share for the local investors and their share is increasing. Still, turnout from traders from outside the GCC region than their GCC counterparts, and the majority of the trading is still for individuals. 

Number of active accounts between the end of December 2019 and the end of January 2020 dropped by -2.7%, compared with a bigger decrease by -3.6% between the end of December 2018 and the end of January 2019. Number of active accounts in the end of January 2020 scored 16,741 accounts or 4.2% of total accounts versus 17,197 accounts in the end of December 2019, 4.4% of total accounts.

GCC Investors’ share out of total value of purchased shares scored 7.1% (5.5% for the same period of 2019) and worth KD 62.252 million, while their contribution out of sold shares was at 4.3% (4.9% in the same period of 2019), worth KD 37.627 million. Their net trading was purchasing by KD 24.624 million.Relative distribution among nationalities changed from its predecessor and was at 78.6% for Kuwaitis, 15.7% for traders from