Al-Shal: 22.2% decline in stock market liquidity during the first half
Al-Shal confirmed in his report that the share prices of listed companies on any stock exchange should be directly proportional to the level of liquidity, meaning that price levels should rise as exchange liquidity increases.
Specifically, liquidity on the Kuwait Stock Exchange declined by approximately 22.2% during the first half of 2026 compared to the first half of 2025, while it rose by approximately 79.2% for the full year 2025 compared to its level in the full year 2024.
The Kuwait Stock Exchange General Index lost approximately 2.3% by the end of June 2026 compared to its level at the end of December 2025, after gaining approximately 21.0% in 2025. The index’s movement during the current year followed the same direction as liquidity trends, which is consistent with logic given the decline in liquidity and the risks associated with geopolitical instability.
Many listed companies still suffer from negative gaps, with some experiencing a wide gap between their market share prices and the book values reflected in their audited and supervised financial statements.
An examination of the margins between stock market prices and book values, based on the published financial data for the first quarter of 2026 and the closing prices at the end of June (i.e., the end of the first half of 2026), indicates that 40 listed companies, or approximately 28.8% of the total number of listed companies, have market share prices exceeding twice their book value. Additionally, approximately 64 other companies, or about 46.0% of listed companies, have market share prices exceeding their book value by between 1% and 99%. Thus, 104 companies, or approximately 74.8% of listed companies, have market share prices higher than their book value per share.
The remaining companies, approximately 25.2% of listed companies (35 companies), are trading at a discount to their book values. Among them, 25 companies, or approximately 18.0% of listed companies, are trading at a discount ranging between 1% and 29%, while 9 other companies, or approximately 6.5% of listed companies, are trading at a discount ranging between 30% and 49% relative to their book values.
