Trading Features at Boursa Kuwait – October 2019

Kuwait Clearing Company issued its report regarding “Trading Volume according to Nationality and Category” for the period from 01/01/2019 to 31/10/2019 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 44.7% of total value of sold shares (36.6% for the first 10 months of 2018) and 40.9% of total value of purchased shares (36.7% for the first 10 months of 2018). Individual investors sold shares in the amount of KD 2.991 billion and purchased shares in the amount of KD 2.740 billion with a net trading of selling, by KD 250.872 million. 

The second large contributor to market liquidity is the institutions and companies sector and their purchases declined alongside their sold shares. It acquired 30.3% of total value of purchased shares (34.1% for the same period of 2018) and 21.8% of total value of sold shares (28% for the same period of 2018). The sector purchased shares worth KD 2.031 billion and sold shares worth KD 1.459 billion, becoming the only sector with net trading of buying by KD 572.551 million.

The third contributor is the clients’ accounts (portfolios) and their contribution is rising, which captured 26.3% of total value of sold shares (23.2% for the same period of 2018) and 22.5% of total value of purchased shares (20.8% for the same period of 2018). This sector sold shares worth KD 1.762 billion and purchased shares worth KD 1.505 billion, with a net trading balance of most sold shares by KD 256.523 million.The last contributor to liquidity is the investment funds sector and their contribution is declining, which acquired 7.2% of total value of sold shares (12.2% 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 483.543 million and purchased shares worth KD 418.387 million, with a net trading of selling by KD 65.156 million.

Boursa Kuwait still continues to be a local Boursa with Kuwaiti traders forming the largest trading group. They sold shares worth KD 5.651 billion capturing 84.4% of total sold shares (80.9% for the same period of 2018), and purchased shares worth KD 5.143 billion acquiring 76.8% of total value of purchased shares (75.5% for the same period of 2018). As such, their net trading balance was -most selling- by KD 508.355 million. 

Percentage share of other investors, out of the total purchased stocks value scored 18.5% (19.4% for the same period of 2018). Purchasing stocks worth KD 1.242 billion and sold shares worth KD 716.925 million, 10.7% of total sold shares (13.3% for the same period of 2018); thus their net trading value was -the only purchasing- by KD 524.820 million. This means that the other foreign investors’ confidence in the local Boursa is increasing which indicates an increased appetite from outside the GCC region after the recent reforms.GCC Investors’ share out of total value of sold shares scored 4.9% (5.8% for the same period of 2018) worth KD 327.351 million, while value of their purchased shares scored 4.6% (5.1% in the same period of 2018), worth KD 310.886 million. Their net trading was selling by KD 16.465 million.

Relative distribution among nationalities changed from its predecessor and was at 80.6% for Kuwaitis, 14.6% for traders from other nationalities and 4.8% for GCC traders, compared with 78.2%, 16.3% and 5.5% 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 October 2019 rose by 10.1%, compared with a decline of -23.2% between end of December 2017 and end of October 2018. Number of active trading accounts in the end of October 2019 was at 16,022 or 4.08% of total accounts, compared to 15,857 accounts in the end of September 2019, i.e. 4.04% of total accounts for the same month, a rise by 1% during October 2019.