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Global Investment House a[euro]" Kuwait - Kuwait Stock Exchange a[euro]" Trading Pattern.

Summary: December witnessed declined trading activity in term of shares and value traded as compared to the previous month. On a month to month basis, value traded decreased 24.1% in December to reach KD1.36bn from KD 1.80bn witnessed in November. This is due to the bearish sentiment that was prevailing among investors, who completed 96,089 transactions as opposed to 145,873 in November, a 52% decrease. The number of shares traded also decreased 38.2% to reach 3.76bn shares.

Global Investment House a" Kuwait - Kuwait Stock Exchange a" Trading PatternDecember witnessed declined trading activity in term of shares and value traded as compared to the previous month. On a month to month basis, value traded decreased 24.1% in December to reach KD1.36bn from KD 1.80bn witnessed in November. This is due to the bearish sentiment that was prevailing among investors, who completed 96,089 transactions as opposed to 145,873 in November, a 52% decrease. The number of shares traded also decreased 38.2% to reach 3.76bn shares.

By Investor Type-Individuals still are the largest segment of traders in the stock exchange, as they accounted for 35.5% of the total shares bought and 38.4% of the total shares sold. Individuals in December bought shares valued at KD485.0mn and sold shares worth KD524.9mn.

As for Companies and Establishments, they accounted for 27.6% of total shares bought and 26.4% of total shares sold. Thus they acted as net buyers in the stock market due to attractive valuations of stocks, which they could consider for the long term. They bought shares valued at KD377.4mn while selling shares valued KD360.7mn.

Table 01: Buying activity among type of investors (Dec.) Source: Kuwait Stock Exchange

As for Investment Funds and Client Accounts, they accounted for 10.1% and 26.9% respectively of total shares bought and 9.0% and 26.2% respectively of total shares sold in December. These two segments approached a different strategy than individuals, by turning net buyers. Client Accounts segment was the only segment that bought more shares in December than November with an increase of 2.8% from KD357.5mn in November to KD367.5mn in December. In addition, they also witnessed the lowest decrease in value of shares sold, decreasing 3.7% in December.

Table 02: Selling activity among type of investors (Dec.) Source: Kuwait Stock Exchange

Individuals segment was the only net sellers in the month of December, which points out to the fact that Institutional investors have a different view on the market as compared to individual investors.

Trading by Nationality type-

Kuwaitis were considered the biggest investors in the KSE, buying shares valued at KD1.25bn and maintained 92% shares of total share bought. They also became net sellers in December, selling shares worth KD1.27bn which accounted for 93%. In December, Kuwaiti's value of shares bought decreased 24.8% from KD1.67bn in November, while on the selling part their value decreased 22.7% on a M-o-M basis.

Figure 01 :Shares of Nationalities in Value of Shares Bought (DEC) Figure 02: Share of Nationalities in Value of Shares Sold (Dec.) Source: Kuwait Stock Exchange Source: Kuwait Stock Exchange

Their GCC counterparts acquired 2.3% share of the total value of shares bought, which amounted to KD31.8mn, however the value of shares bought decreased 22.4% from November which was valued at KD41.0mn. In addition, they sold more shares than they bought, their value of shares sold declined 27.4% to KD38.7mn in December.

Other nationalities became the only net buyers on the KSE in December. Their value of shares sold has decreased 45.1% from November reaching KD57.2mn from KD104.1mn a month earlier, while they bought shares valued KD77.6mn. Their effect was positive on the market but its impact was considered very minimal since less share they accounted for only 4.2% of total. On the buying side, they witnessed the lowest decline as compared to Kuwaitis and GCC citizens. Their value of shares bought decreased 12.6% as opposed to Kuwaitis and GCC citizens, which decreased 24.8% and 22.4% respectively.

January-December 2008

By Nationality-Kuwaitis were the largest segment in the Kuwait Stock Exchange in 2008. They traded shares that amounted to KD32.6bn and acquired a share of above 90% in terms of value of shares bought and sold. They bought 75.2bn shares valued at KD32.6bn and sold 74.6bn valued at KD32.3bn.

Figure 03: Value of Traded Shares Bought (2008) Figure 04: Value of Traded Shares Sold (2008)

Source : Kuwait Stock Exchange Source : Kuwait Stock Exchange

The others nationalities segment was considered the second largest segment in the KSE, they invested KD1.8bn buying shares and KD2.0bn selling shares through 278,000 transactions, thus turning net sellers in 2008. Their share was 4.21% of the total shares bought, and 4.66% of the total shares sold, making them more influential in the KSE than the neighboring GCC investors.

The GCC citizens maintained a small presence in the Kuwait SE, bought shares valued at KD822.4mn and sold shares worth KD955.7mn, thus becoming net sellers in 2008. Throughout, 2008 they concluded 89,738 transactions.

Figure 05: Shares Bought by Nationalities Figure 06: Shares Sold by Nationalities

Source: Kuwait Stock Exchange Source: Kuwait Stock Exchange By Investor Type-

During 2008, total number of transactions amounted to 4.25mn. Individual and Client accounts were net sellers in 2008. Individuals sold 36.4bn shares as opposed to buying 32.4bn shares, whereas Client accounts sold 18.8bn shares and bought 17.2bn shares. Individuals accounted for the largest shares among the investors in terms of completed transactions and traded shares. Individuals made up 34.0% of the total value of shares bought among investors and 40.2% of total value of shares sold.

On the other hand, Companies/Establishments and Investment Funds among were the net buyers for 2008. Companies bought shares valued at KD11.8bn or 33.6% of the total value of shares bought and sold shares valued at KD9.9bn or 25.7% of the total shares sold. They bought 24.3bn shares and sold 18.9bn shares. Investment Funds were also net buyers in 2008. However, we can notice that investment funds trading activity was low compared with individuals and companies. Funds made up 10.1% of the total shares bought and 9.6% of the total value of shares sold in 2008.

Figure 07: Investor Type- Value of traded shares (2008) Source : Kuwait Stock Exchange.

Overall, the Kuwait SE traded 80.33bn shares that were valued at KD35.37bn in 4.25mn transactions throughout 2008. Kuwaitis accounted for the largest shares in trading activity, they completed 3.8mn transaction, followed by others. Investment funds and companies/establishments were net buyers in 2008 especially when stock prices are more attractive than ever before, while individuals and client accounts were net-sellers. [c] 2009 Al Bawaba (www.albawaba.com)

[c] 2008 Al Bawaba (Albawaba.com)

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Publication:Albawaba.com
Date:Jan 20, 2009
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