Kuwait Stock Exchange Surges 40% Following Morgan Stanley Review

Ibrahim Mohammed – The Kuwait Stock Exchange concluded its August trading sessions with a notable surge in trading activity, as liquidity jumped to approximately 120.7 million dinars during yesterday’s (Monday) session. This spike coincided with the periodic review of MSCI indices, which triggered rebalancing and portfolio adjustments by index-tracking funds and managers.

The month-end session marked an exceptional liquidity milestone, with trading values rising by approximately 34.76 million dinars compared to 85.94 million dinars on Sunday, representing a 40.4% growth. This reflects the intensity of operations accompanying the implementation of MSCI review changes as the market closed. MSCI reviews hold particular significance for the Kuwait Stock Exchange due to their direct impact on the movements of global index-tracking funds and the subsequent rebalancing of investment weights in affected stocks.

Activity was not limited to trading values; trading volumes rose to 391.02 million shares, up from 336.52 million shares on Sunday, while the number of transactions increased to approximately 26,120, compared to 23,700 in the previous session.

The Kuwait Stock Exchange ended the final session of August with a capitalization hovering around 53.28 billion dinars, closing a month characterized by an overall positive performance despite fluctuations in individual stocks and indices during certain sessions. Looking at the broader picture of August’s performance, monthly trading statistics reveal that the market added approximately 872 million dinars to its capitalization in a single month. The total market value of shares rose by 1.66% to nearly 53.29 billion dinars, compared to 52.42 billion dinars at the end of July.

These gains coincided with a clear improvement in activity indicators. Market liquidity increased by 11.25% during the month to reach 1.78 billion dinars, while trading volumes grew by 4.13% to 6.55 billion shares. The number of transactions also rose by 8.74%, reaching approximately 459,290.

August figures clearly show outperformance by small and mid-cap stocks compared to their leading counterparts. The main market index recorded monthly gains of 5.65%, while the “Main 50” index saw a larger jump of 9.33%, compared to a more modest rise of 0.79% for the First Market.

The First Market index closed the month at 9,288.3 points, adding 72.82 points from its July close. The General Market index rose by 1.61%, or 140.72 points, to close at 8,897.4 points. The Main Market index ended August at 9,230.47 points, gaining approximately 493.91 points during the month, while the “Main 50” closed at 10,998.34 points, with gains of 938.95 points.

The gap between index growth rates reflected a shift in investment activity during August toward small and mid-cap stocks, while leading stocks listed in the First Market showed calmer performance.

In terms of sectors, monthly gains covered 11 sectors. The technology sector led the gains with a surge of 127.81%, while the healthcare sector declined by 5.19%, and the utilities sector fell by 3.45%.

The financial services sector continued to play the largest role in trading activity, accounting for 43.09% of total trading volume alone, equivalent to 2.82 billion shares. It also held 30.62% of liquidity, valued at 543.82 million dinars, and approximately 27.39% of transactions, totaling 125,790 trades.

On an individual stock level, “Al-Anzima” topped the monthly gainers list with a rise of 127.82%. “Al-Taksees,” which rose 24.46% during the month, led in trading volume with 370.83 million shares traded. Conversely, “Baitak” maintained its position among the top stocks by trading value, capturing monthly liquidity of 152.36 million dinars, despite its share price declining by 1.91% during August.

Supporting factors

The positive performance of the stock exchange in August was supported by a set of catalysts, foremost among them the financial results of listed companies, alongside activity related to major government and investment projects, which provided confidence-building factors and boosted trading.

Financial results for 131 listed companies showed that their net profits increased by 7.94% year-on-year during the first half of 2026, reaching approximately 1.36 billion dinars, reflecting companies’ continued ability to enhance profitability levels.

This coincided with a 5.58% growth in the total assets of companies included in the statistics, reaching 190.14 billion dinars by the end of June 2026, compared to 180.09 billion dinars in the same period last year, meaning companies added over 10 billion dinars to their asset base within a year.

Furthermore, net profits for companies surged by 89.72% year-on-year during the second quarter of the current year to reach 969.5 million dinars. At the same time, 10 listed companies approved interim distributions for the first half, totaling 306.74 million dinars.

Alongside strong financial results, August witnessed a surge in government and investment projects, including the Real Estate Developer project and the announcement of the qualification of 22 consortia to compete for projects with the Public Authority for Housing Welfare. Additionally, investment activity in the oil sector and the issuance of Islamic sukuk contributed to the momentum.

Thus, the Kuwait Stock Exchange closed August trading with positive results across multiple levels: market gains nearing 872 million dinars, monthly liquidity of 1.78 billion dinars, and a strong surge in small and mid-cap stocks. The session implementing the MSCI review provided an active end to the month with liquidity exceeding 120 million dinars, opening the door to September as investors anticipate continued momentum and a rotation of roles between leading stocks and Main Market shares.