Global :Huge decline in trading activity in KSE during July
Global Investment House – Global – Kuwait - The month of July witnessed a huge decline on trading activity in the KSE. KSE witnessed a 51.3% decline in trading value and 53.6% decline in the number of traded shares on the back of decreasing stock prices and the decrease in oil prices where WTI reached as low as US$59.63/bbl. Also the onset of summer months impacted the trading activity. The bullish run of the past two month in the KSE ended in July. In fact during the period between 1st July and 14th July the trading volume averaged around 300mn share and the value didn’t exceed the KD150mn level except once. This took the Global General Index from 221.37pts to 204.51pts, a 7.6% decrease in a 10 day span. On a month to month basis, value traded decreased 51.3% in July to reach KD1,805mn from KD3,707mn witnessed in June. Investors completed 167,068 transactions as opposed to 297,412 in June, a 43.8% decrease. The number of shares traded decreased 53.6% to reach 7.21bn shares.
Trading by Investor Type
Individuals continue to be the largest segment of traders in the stock exchange, as they accounted for 41.4% of the total shares bought and 48.2% of the total shares sold. Compared with previous month, total shares bought by individuals decreased 54.3% in July and total shares sold by individuals decreased 49%. Individuals in July bought shares valued at KD748mn and sold shares worth KD870mn, a net sell of KD121.6mn.
As for Companies and Establishments, they accounted for 23.2% of total shares bought and 20.8% of total shares sold. They bought shares valued at KD418mn while selling shares valued KD376mn, a net buy of KD42.1mn. Overall, buying activity of Companies and Establishments decreased by 55.8% in July, while selling activity by decreased 54.5%. Companies and Establishments continued their buying spree for the fourth consecutive month.