Trading Features at Boursa Kuwait – November 2019

Kuwait Clearing Company issued its report regarding “Trading Volume according to Nationality and Category” for the period from 01/01/2019 to 30/11/2019 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 rising in terms of selling and purchasing shares. They acquired 44.5% of total value of sold shares (37.4% for the first 11 months of 2018) and 40.6% of total value of purchased shares (36.7% for the first 11 months of 2018). Individual investors sold shares in the amount of KD 3.229 billion and purchased shares in the amount of KD 2.951 billion with a net trading of most selling by KD 278.565 million. 

The second large contributor to market liquidity is the institutions and companies sector and their purchases declined alongside their sold shares. It acquired 30% of total value of purchased shares (34.1% for the same period of 2018) and 22.1% of total value of sold shares (27.4% for the same period of 2018). The sector purchased shares worth KD 2.182 billion and sold shares worth KD 1.606 billion, becoming the only sector with net trading of buying by KD 576.232 million.The third contributor is the clients’ accounts (portfolios) and their contribution is rising, which captured 

26.4% of total value of sold shares (23.5% for the same period of 2018) and 23.1% of total value of purchased shares (20.9% for the same period of 2018). This sector sold shares worth KD 1.914 billion and purchased shares worth KD 1.679 billion, with a net trading balance of sold shares by KD 234.997 million. The last contributor to liquidity is the investment funds sector and their contribution is declining, which acquired 7.1% of total value of sold shares (11.7% for the same period of 2018) and 6.2% of total value of purchased shares (8.3% for the same period 2018). The sector sold shares worth KD 514.642 million and purchased shares worth KD 451.972 million, with a net trading of selling by KD 62.670 million. Boursa Kuwait still continues to be a local Boursa with Kuwaiti traders forming the largest trading group. They sold shares worth KD 6.114 billion capturing 84.2% of total sold shares (81.2% for the same period of 2018), and purchased shares worth KD 5.599 billion acquiring 77.1% of total value of purchased shares (75.6% for the same period of 2018). As such, their net trading balance was -most selling- by KD 515.550 million. Percentage share of other foreign investors, out of the total purchased stocks value scored 18.2% (19.1% for the same period of 2018). Purchasing stocks worth KD 1.325 billion and sold shares worth KD 787.262 million, 10.8% of total sold shares (12.9% for the same period of 2018);  thus  their  net  trading  value was -the only purchasing- by KD 537.615 

The second large contributor to market liquidity is the institutions and companies sector and their purchases declined alongside their sold shares. It acquired 30% of total value of purchased shares (34.1% for the same period of 2018) and 22.1% of total value of sold shares (27.4% for the same period of 2018). The sector purchased shares worth KD 2.182 billion and sold shares worth KD 1.606 billion, becoming the only sector with net trading of buying by KD 576.232 million.The third contributor is the clients’ accounts (portfolios) and their contribution is rising, which captured  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 sold shares scored 5% (5.8% for the same period of 2018) worth KD 362.454 million, while value of their purchased shares scored 4.7% (5.3% in the same period of 2018), worth KD 340.389 million. Their net trading was selling by KD 22.065 million. Relative distribution among nationalities changed from its predecessor and was at 80.6% for Kuwaitis, 14.5% for traders from other nationalities and 4.8% for GCC traders, compared with 78.4%, 16% and 5.6% for Kuwaitis, other nationalities and GCC traders respectively, for the same period in 2018. 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 2018 and the end of November 2019 rose by 14.6%, compared with a decline of -23.4% between end of December 2017 and end of November 2018. Number of active trading accounts in the end of November 2019 was at 16,689 or 4.2% of total accounts, compared to 16,022 accounts in the end of October 2019, i.e. 4.1% of total accounts for the same month, a rise by 4.2% during November 2019.