Trading Features at Boursa Kuwait – March 2020

Kuwait Clearing Company (KCC) issued its report regarding “Trading Volume According to Nationality and Category” for the period of 01/01/2020 to 31/03/2020, as published on the official website of Boursa Kuwait. The report indicated that individuals still form the largest trading category, where their total purchased shares increased and their sold shares decreased. They captured 38.2% of total value of purchased shares (37.4% First Quarter 2019) and 36.7% of total value of sold shares (44.8% First Quarter 2019). Individual traders purchased shares amounting KD 910.156 million and sold shares worth KD 874.319 million, with a net of purchasing trading value of KD 35.837 million

The second largest contributor to the market’s liquidity is the institutions and companies sector which captured 30.8% of total value of purchased shares (34.5% for the same period of 2019) and 28.4% of total value of sold shares (22.2% for the same period of 2019). This sector purchased shares worth KD 733.730 million and sold shares worth KD 676.509 million, making it the most sector with a net purchased trading value of KD 57.221 million.    

The third contributor to market liquidity is the clients’ accounts (portfolios) sector which captured 26.4% of total value of purchased shares (21.9% for the same period of 2019) and 26.4% of total value of sold shares (25.2% for the same period of 2019). This sector purchased shares worth KD 628.839 million and sold shares worth KD 628.780 million, with a net purchased trading value of KD 50.4 thousand. 

The last contributor to liquidity is the investment funds sector which captured 8.5% of total value of sold shares (6.2% for the same period of 2019) and 4.6% of total value of purchased shares (7.9% for the same period of 2019). This sector sold shares worth KD 202.490 million and purchased shares worth KD 109.373 million, with an only net sold trading value of KD 93.116 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 1.814 billion, capturing 76.1% of total purchased shares (73% for the same period of 2019), and sold shares worth KD 1.793 billion capturing 75.3% of total value of sold shares (83.6% for the same period of 2019), becoming the most group with a net purchased trading value of KD 20.297 million.

Percentage share of other investors out of total sold shares value scored 19.8% (11.4% for the same period of 2019), and sold shares worth KD 470.470 million and purchased shares worth KD 433.012 million, 18.2% of total sold shares (22.3% for the same period of 2019); thus making their trading value the only with a net sold of KD 37.457 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 5.7% (4.6% for the same period of 2019) worth KD 135.415 million, while value of sold shares scored 5% (5% for the same period of 2019) worth KD 118.254 million, with a net purchased trading value of KD 17.161 million.  

The relative distribution among nationalities differed slightly from its predecessor. Kuwaitis occupied 75.7%, other nationalities occupied 19% and GCC traders’ share captured 5.3%, versus 78.3%, 16.9% and 4.8% 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 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 March 2020 declined by -1.5%, compared with a greater decrease by -3% between the end of December 2018 and the end of March 2019. Number of active accounts in the end of March 2020 was at 16,934 accounts or 4.27% of total accounts versus 17,203 accounts in the end of February 2020 and 4.34% of total accounts for the same month, dropping by -1.6% during March 2020.