By: Mohamed Farouk
Mubasher: Boursa Kuwait showed in October, a tendency among gulf and foreign investors towards buying, with their investments netting KWD 24.67 million ($81.5 million) by the end of the months.
The total purchases by individuals, companies, institutions, and funds from the Arabian Gulf and other countries totalled KWD 107.39 million, versus KWD 82.72 million in sales.
Meanwhile, Kuwaiti investors were net sellers, at KWD 24.67 million, with purchases amounting to KWD 396.59 million and sales at KWD 421.26 million.
Foreigners and gulf investors dominated 21.3% of total purchases in Boursa Kuwait last month, while their sales made up for 16.4% of the total that reached KWD 503.98 million.
On the other hand, local investors dominated 78.7% of purchases, and 83.6% of sales, as shown by the stock exchange most recent data.
Market analyst Saad Al-Roumy told Mubasher that Boursa Kuwait has attracted more investments from the gulf countries and the world last month, supported by a number of factors that show the continuance of the positive performance since the beginning of 2019.
Boursa Kuwait upgrades on a number of global indices, such as the MSCI, as well as the inclusion in S&P Dow Jones Indices, and Global Equity Indices, as well as getting an Emerging Markets classification in December 2018 and in the FTSE Russell Emerging Markets Index in September 2017, are among the factors supporting the Kuwaiti stock exchange, he further noted.
However, the confidence of local investors in the market remains weak, especially with rising concerns and anticipation to geopolitical risks, said Al-Roumy, noting that the Kuwaiti investor is attracted towards investment opportunities in neighboring markets, led by Saudi Arabia and the UAE, with the Aramco initial public offering (IPO) further increasing investors’ appetite towards the former.
It is worth noting that Boursa Kuwait’s indices rose in October, while market capitalisation gained KWD 220 million ($726 million).
The All-Share Market index increased by 38.63 points, or 0.68%, to reach 5,717.33 points in October.
The Premier Market index grew by 36.35 points to 6,211.13 points and the Main Market index went up by 44.12 points to 4,757.94 points.
Market capitalisation rose to KWD 33.08 billion in October, compared to KWD 32.86 billion in September, while trading volume shrank to 2.924 billion shares, while liquidity decreased to KWD 503.76 million.
The analyst expects investment flows in Boursa Kuwait to improve during November, especially with geopolitical stability and a potential deal between the US and China decreasing trade war concerns.
