Trading Features at Boursa Kuwait – May 2020

Kuwait Clearing Company (KCC) issued its report regarding “Trading Volume According to Nationality and Category” for the period of 01/01/2020 to 31/05/2020, as published on the official website of Boursa Kuwait. The report indicated that individuals still form the largest trading category. They captured 40.6% of total value of purchased shares (40.1% First 5 Months 2019) and 39.3% of total value of sold shares (46% First 5 Months 2019). Individual traders purchased shares amounting KD 1.453 billion and sold shares worth KD 1.407 billion, with a net of most purchasing trading value of KD 46.130 million.

The second largest contributor to the market’s liquidity is the institutions and companies sector which captured 28.5% of total value of sold shares (20.4% for the same period of 2019) and 28.4% of total value of purchased shares (31.8% for the same period of 2019). This sector sold shares worth KD 1.020 billion and purchased shares worth KD 1.015 billion, with a net sold trading value of KD 5.413 million.    

The third contributor to market liquidity is the clients’ accounts (portfolios) sector which captured 26% of total value of purchased shares (21.7% for the same period of 2019) and 25% of total value of sold shares (26.2% for the same period of 2019). This sector purchased shares worth KD 929.641 million and sold shares worth KD 893.475 million, with a net purchased trading value of KD 36.166 million. 

The last contributor to liquidity is the investment funds sector which captured 7.2% of total value of sold shares (7.4% for the same period of 2019) and 5.1% of total value of purchased shares (6.4% for the same period of 2019). This sector sold shares worth KD 258.846 million and purchased shares worth KD 181.962 million, the most net sold trading value of KD 76.883 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 2.796 billion, capturing 78.1% of total purchased shares (75% for the same period of 2019), and sold shares worth KD 2.739 billion capturing 76.5% of total value of sold shares (85.1% for the same period of 2019), becoming the most group with a net purchased trading value of KD 57.173 million.

Percentage share of other investors out of total sold shares value scored 18.9% (10% for the same period of 2019), and sold shares worth KD 675.638 million and purchased shares worth KD 577.005 million, 16.1% of total sold shares (19.9% for the same period of 2019); thus making their trading value the only with a net sold of KD 98.633 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% (5.2% for the same period of 2019) worth KD 206.400 million, while value of sold shares scored 4.6% (4.9% for the same period of 2019) worth KD 164.940 million, with a net purchased trading value of KD 41.460 million.  

The relative distribution among nationalities differed slightly from its predecessor. Kuwaitis occupied 77.3%, other nationalities occupied 17.5% and GCC traders’ share captured 5.2%, versus 80% for Kuwaitis, 14.9% for other nationalities and 5.1% 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 May 2020 declined by -7.2%, compared with a slight increase by 0.4% between the end of December 2018 and the end of May 2019. Number of active accounts in the end of May 2020 was at 15,961 accounts or 4% of total accounts versus 15,631 accounts in the end of April 2020 and 3.9% of total accounts for the same month, rising by 2.1% during May 2020.