Individuals dominate Kuwait stock market in 2011

Individuals were the larger trading group at Kuwait Stock Exchange (KSE) in 2011 with about 46.7 percent of the total value of sold shares and 42.2 percent of the total value of purchased shares, a specialized economic report showed Friday. The report, issued by Al-Shall Economic Consultants, added that individual investors sold shares worth KD 2.8038 billion and bought shares worth KD 2. 5329 billion, thus becoming the bigger selling group with a total of about KD 270.9 million. It pointed out that corporations and companies sector acquired 25.9 percent of total value of purchased shares and 20.3 percent of sold shares value. The sector purchased shares worth KD 1.5587 billion and sold shares worth KD 1. 2162 billion, with a net trading balance-more purchasing- by KD 342.5 million. The clients' accounts sector (portfolios) came third in contributions to market's liquidity and acquired 22.3 percent of total value of sold shares and 21.6 percent of total value of purchased shares, the report noted. The sector sold shares worth KD 1.3399 billion and purchased shares worth KD 1.2958 billion, with a net trading -buying balance by KD 44.1 million. The report revealed that the last contributor to liquidity was the investment funds which took 10.7 percent of total value of sold shares and 10. 3 percent of total value of purchased shares. The sector sold shares worth KD 645.6 million and purchased shares worth KD 618 million, with a net trading balance-selling- by about KD 27.5 million. It also disclosed that KSE is still characterized by its continuation to be local with Kuwaiti investors forming the major group. They purchased shares worth KD 5.516 billion (91.8 percent) of the total value of purchased shares. On the other hand, they sold shares worth KD 5.407 billion (90.0 percent) of total sold shares. Thus, their net trading balance of value-buying- scored about KD 108.6 million. Share of others, out of the total value of sold shares, scored about 6.5 percent worth KD 391.4 million vis-@-vis KD 337.5 million (5.6 percent) of total value of sold shares. Their net trading value-selling scored about KD 53.9 million GCC investors' share out of total value of sold shares formed about 3.4 percent worth KD 206. 8 million vis-@-vis 2.5 percent or KD 152.1 million for purchased shares by a net trading value-selling of about KD 54.7 million. Comparing trading characteristics for the entire 2011 year, the relative distribution among nationalities remained almost the same as follows: 90.9 percent for Kuwaitis, about 6.1 percent for traders from other nationalities, and 3.0 percent for GCC traders. In other words, KSE remained local and with more investors from outside the GCC region than from within GCC, and with prevailing trading to individuals and not to corporations. The number of active trading accounts dropped by (-40 percent during 2011and their number settled at 13,848 accounts in the end of 12/2011 (5.7 percent of total accounts) and dropped below November's level by 2.9 percent in one month, which is an index for continued refrain from trading.