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A specialized economic report stated that the corporate and institutional sector remains the largest participant in the Kuwait Stock Exchange, having increased its share to 67.2 percent of the total value of shares sold and 66.9 percent of the total value of shares purchased through September 30 of the previous year, compared to 61.3 percent and 62.9 percent, respectively, for the same period in 2025.

The report by Al-Shal Consultancy, released on Saturday, based on figures from the Kuwait Clearing Company regarding trading volume from the beginning of the year through September 30, 2026, indicated that the corporate and institutional sector sold shares worth 10.678 billion dinars (approximately $32.888 billion) and purchased shares worth 10.627 billion dinars (approximately $32.731 billion), resulting in a net selling position of approximately 51.386 million dinars (approximately $253.268 million).

It added that the second-largest contributor to market liquidity is the individual investor sector, whose share declined, as they accounted for 30.1 percent of the total value of shares purchased (35.3 percent for the same period in 2025) and 29.7 percent of the total value of shares sold (36.9 percent for the same period in 2025).

The report noted that individual investors purchased shares worth 4.784 billion dinars (approximately $14.734 billion) and sold shares worth 4.720 billion dinars (approximately $14.537 billion), resulting in a net buying position of approximately 64.243 million dinars (approximately $197.8 million).

It highlighted that the third-largest contributor to market liquidity is the client accounts (portfolios) sector, whose share increased, accounting for 2.6 percent of the total value of shares sold (1.3 percent for the same period in 2025) and 2.6 percent of the total value of shares purchased (1.3 percent for the same period in 2025).

It added that the client accounts (portfolios) sector sold shares worth 410.757 million dinars (approximately $1.265 billion) and purchased shares worth 410.455 million dinars (approximately $1.264 billion), resulting in a net selling position of approximately 302,000 dinars (approximately $930,160).

The report pointed out that the last contributor to market liquidity is the investment funds sector, which accounted for 0.5 percent of the total value of shares sold (0.5 percent for the same period in 2025) and 0.4 percent of the total value of shares purchased (0.5 percent for the same period in 2025).

It mentioned that the investment funds sector sold shares worth 75.752 million dinars (approximately $233.316 million) and purchased shares worth 63.197 million dinars (approximately $194.646 million), resulting in a net selling position of approximately 12.554 million dinars (approximately $38.666 million).

It stated that a characteristic of the Kuwait Stock Exchange is its continued status as a local market, with Kuwaiti investors being the largest participants, having purchased shares worth 13.310 billion dinars (approximately $40.994 billion), thereby accounting for 83.8 percent of the total value of shares purchased (84.7 percent for the same period in 2025).

The report clarified that Kuwaiti investors sold shares worth 12.969 billion dinars (approximately $39.944 billion), accounting for 81.6 percent of the total value of shares sold (87.4 percent for the same period in 2025), resulting in a net buying position of approximately 340.999 million dinars (approximately $1.050 billion).

It indicated that the share of other investors in the total value of shares sold amounted to approximately 2.674 billion dinars (approximately $8.235 billion), representing 16.8 percent of the total value of shares sold (10.8 percent for the same period in 2025).

The report added that the value of shares purchased by other investors amounted to approximately 2.383 billion dinars (around 7.339 billion US dollars), representing 15 percent (13.7 percent for the same period in 2025), with their net trading activity showing a sell-off of approximately 291.461 million dinars (around 897.699 million US dollars).

It noted that the share of GCC investors in the total value of shares sold amounted to approximately 1.5 percent (1.9 percent for the same period in 2025), valued at 241.353 million dinars (around 743.367 million US dollars).

The report stated that the value of shares purchased by GCC investors amounted to approximately 191.814 million dinars (around 590.787 million US dollars), representing about 1.2 percent (1.6 percent for the same period in 2025), resulting in a net sell-off in their trading activity of approximately 49.538 million dinars (around 152.577 million US dollars).

It pointed out that the relative distribution among nationalities had changed compared to the previous period, with approximately 82.7 percent now attributed to Kuwaitis, 15.9 percent to traders of other nationalities, and 1.4 percent to traders from GCC countries, compared to approximately 86 percent for Kuwaitis, 12.3 percent for traders of other nationalities, and 1.7 percent for traders from GCC countries during the same period last year.

The report emphasized that the Kuwait Stock Exchange remained local, with the largest share belonging to local investors, and that interest from other investors outside the GCC countries still exceeds that of their counterparts within the GCC.

It clarified that the number of active trading accounts rose by approximately 20.6 percent between the end of December 2025 and the end of September 2026, compared to a 76 percent increase between the end of December 2024 and the end of September 2025.

It said that the number of active trading accounts at the end of September 2026 reached approximately 57,472 accounts, representing 12.1 percent of the total accounts, compared to approximately 55,569 accounts at the end of August 2026, which represented 11.7 percent of the total accounts for that month, marking an increase of 3.4 percent.

Regarding the gap between stock prices and their book values, the report stated, “The prices of shares of listed companies in any stock exchange are expected to be directly proportional to the level of liquidity,” meaning that price levels are expected to rise as stock exchange liquidity increases.

The report clarified that stock exchange liquidity decreased by approximately 19.1 percent during the first nine months of 2026 compared to the same period in 2025, while it rose by approximately 79.2 percent for the full year 2025 compared to its level for the full year 2024.

It pointed out that the general index lost approximately 1.4 percent by the end of September 2026 compared to its level at the end of December 2025, after gaining approximately 21 percent in 2025. The index’s movement during the current year followed the same direction as liquidity trends, which is logical given the decline in liquidity and justified by risks associated with geopolitical instability.

The report highlighted that many listed companies suffer from a negative gap, with some experiencing a wide disparity between the market prices of their shares and the book values reflected in their audited and supervised financial statements.

It said that an examination of the margins between stock prices and book values for the first half of 2026, along with closing prices at the end of last September, indicates that 40 companies, or approximately 28.8 percent of the total number of companies, have market share prices exceeding twice their book value. Additionally, approximately 68 other companies, or about 48.9 percent of the total, have market share prices exceeding their book value by percentages ranging between 1 and 99 percent. Thus, 108 companies, or approximately 77.7 percent, have market share prices exceeding their book value.

The report added, “The remaining 22.3 percent of listed companies, or 31 firms, are trading at a discount to their book value. Among them, 21 companies, or approximately 15.1 percent of listed firms, are trading at a discount ranging from 1 to 29 percent, while nine other companies, or about 6.5 percent of listed firms, are trading at a discount ranging from 30 to 49 percent relative to their book value.”

It pointed out that one company suffers from what can be considered a wide gap between its book value and market price, with a discount exceeding 50 percent.

The report noted that the number of companies trading below their book value per share was higher at the end of 2025, reaching 40 companies, or approximately 28.8 percent of the total listed companies at that time. This narrowing of the gap may be attributed to some investors favoring cheaper stocks in hopes of profiting from potential price increases under improved geopolitical conditions.

It clarified that the persistent significant disparity in liquidity between the two markets, as well as within the companies of each market, may be a contributing factor. Liquidity in the first nine months of 2026 shifted by 63.9 percent to the First Market, increasing its concentration share after it accounted for approximately 56.4 percent of total liquidity for the full year 2025. Within that market, half of its companies captured approximately 75.6 percent of its liquidity, leaving only 24.4 percent for the other half.

The report further indicated that half of the companies in both markets (the First and Main markets) accounted for approximately 91.9 percent of the bourse’s total liquidity, while the other half received only 8.1 percent. Consequently, the liquidity surplus of some small companies had a dominant effect on the positive gap between their prices and book values, whereas the liquidity shortage of other companies maintained the gap, albeit slightly narrowed in favor of their prices, keeping them below their book values.