Institutions and Companies Sector Accounts for 67.2% of Kuwait Stock Exchange Trades - Sarmad

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% of the total value of shares sold and 66.9% of the total value of shares purchased through September 30 of the previous year, compared to 61.3% and 62.9% respectively for the same period in 2025.

The "Al-Shal Consultations" report, released on Saturday, clarified, based on figures from the Kuwait Clearing Company regarding trading volume from the beginning of the year through September 30, 2026, that the corporate and institutional sector sold shares worth 1.678 billion dinars, while purchasing shares worth 1.627 billion dinars, resulting in a net trading position of approximately 51.386 million dinars in sales.

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

The report noted that individual investors purchased shares worth 4.784 billion dinars, while selling shares worth 4.720 billion dinars, resulting in a net trading position of approximately 64.243 million dinars in purchases.

It pointed out that the third largest contributor to market liquidity is the client accounts sector ("portfolios"), whose share has risen, capturing 2.6% of the total value of shares sold (1.3% for the same period in 2025) and 2.6% of the total value of shares purchased (1.3% for the same period in 2025).

It added that the client accounts sector sold shares worth 410.757 million dinars, while purchasing shares worth 410.455 million dinars, resulting in a net trading position of approximately 302,000 dinars in sales.

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

It mentioned that the investment funds sector sold shares worth 75.752 million dinars, while purchasing shares worth 63.197 million dinars, resulting in a net trading position of approximately 12.554 million dinars in sales.

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, thereby accounting for 83.8% of the total value of shares purchased (84.7% for the same period in 2025).

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

It indicated that the share of other investors in the total value of shares sold amounted to approximately 2.674 billion dinars, representing 16.8% of the total value of shares sold (10.8% 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, representing 15% (13.7% for the same period in 2025), resulting in a net trading position of approximately 291.461 million dinars in sales.

It noted that the share of investors from Gulf Cooperation Council (GCC) countries in the total value of shares sold amounted to approximately 1.5% (1.9% for the same period in 2025), valued at 241.353 million dinars.

The report mentioned that the value of shares purchased by GCC investors amounted to approximately 191.814 million dinars, representing approximately 1.2% (1.6% for the same period in 2025), resulting in a net trading position of approximately 49.538 million dinars in sales.

He noted that the relative distribution by nationality has changed compared to the previous period, with Kuwaitis now accounting for approximately 82.7%, traders from other nationalities for 15.9%, and traders from Gulf Cooperation Council (GCC) countries for 1.4%, compared to 86% for Kuwaitis, 12.3% for other nationalities, and 1.7% for GCC countries during the same period last year.

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

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

He pointed out that the general index lost approximately 1.4% by the end of September 2026 compared to its level at the end of December 2025, after gaining approximately 21% in 2025. The index’s movement this year followed the same trend as liquidity, declining alongside it, with the justification being risks associated with geopolitical instability.

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

He explained that readings of stock price and book value margins for the first half of 2026, along with closing prices at the end of last September, indicate that 40 companies, or approximately 28.8% of the total number of companies, have market share prices exceeding twice their book value. Additionally, approximately 68 other companies, or about 48.9% of the total, have market share prices exceeding their book value by percentages ranging from 1% to 99%. Thus, 108 companies, or approximately 77.7%, have market share prices exceeding their book value.

The report added that the remaining companies (approximately 22.3% of listed companies, or 31 companies) are traded at a discount to their book values. Among them, 21 companies (approximately 15.1%) are traded at a discount ranging from 1% to 29%, and 9 other companies (approximately 6.5%) are traded at a discount ranging from 30% to 49% relative to their book values. Meanwhile, one company suffers from what can be considered a massive gap, with a discount level exceeding 50%.