Global : Ramadan and Eid Holidays decrease trading activity in September.

Published October 13th, 2009 - 02:24 GMT

 

Global Investment House – <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Kuwait - The month of September witnessed a decrease in trading activity in the KSE. KSE observed a 39.7% decrease in trading value and 29.4% decrease in the number of traded shares on the back of the Ramadan season and Eid holidays. Single day trading value in September reached as high as KD173.4mn and trading volume reaching as high as 467.0mn shares. On a month to month basis, value traded decreased 37.9% in September to reach KD1,426mn from KD2,297mn witnessed in August. Investors completed 105,223 transactions as opposed to 165,834 in August, a 36.5% decrease. The number of shares traded decreased 29.4% to reach 5.7bn shares.

 

Trading by Investor Type

Individuals continue to be the largest segment of traders in the stock exchange, as they accounted for 41.1% of the total value of shares bought and 42.7% of the total value of shares sold. Compared with previous month, total value of shares bought by individuals decreased 36.3% in September and total value of shares sold by individuals decreased 33.9%. Individuals in September bought shares valued at KD586.7mn and sold shares worth KD609.2mn, a net sell of KD22.5mn.

 

Table 01: Buying activity among type of investors (September.)

KD mn

July

August

September

% Growth

Individuals

748.0

920.5

586.7

-36.3%

Company/Establishment

418.1

495.1

417.9

-15.6%

Investment Funds

169.5

224.0

97.7

-56.4%

Client Accounts

469.6

657.5

324.6

-50.6%

Total

1,805.1

2,297.2

1,426.9

-37.9%

Source: Kuwait Stock Exchange

 

As for Companies and Establishments, they accounted for 29.3% of total shares bought and 27.3% of total shares sold. They bought shares valued at KD417.9mn while selling shares valued KD389.6mn, a net buy of KD28.3mn. Overall, buying activity of Companies and Establishments decreased by 15.6% in September, while selling activity by decreased 18.5%, the least decrease among other traders. Companies and Establishments net buyers for the sixth consecutive month.

 

Table 02: Selling activity among type of investors (September.)

KD mn

July

August

September

% Growth

Individuals

869.6

921.7

609.2

-33.9%

Company/Establishment

375.9

478.0

389.6

-18.5%

Investment Funds

155.2

212.2

116.8

-44.9%

Client Accounts

404.4

685.4

311.3

-54.6%

Total

1,805.1

2,297.2

1,426.9

-37.9%

Source: Kuwait Stock Exchange

 

As for Investment Funds and Client Accounts, they accounted for 6.8% and 22.8% respectively of total shares bought and 8.2% and 21.8% respectively of total shares sold in September. Investment funds were net sellers, buying shares valued at KD97.7mn and selling shares valued at KD116.8mn, a net sell of KD19.1mn. Investment Funds trading value is considered the lowest throughout 2009. As for Client Accounts, they acted as net buyers, although their buying activity in September decreased  by 50.6% and selling activity decreased by 54.6%. Client Accounts’ bought shares valued at KD324.6mn and sold shares valued at KD311.3mn, a net buy of KD13.3mn.

 

Table 03: Net Buying

KD mn

July

August

September

Individuals

(121.6)

(1.2)

(22.5)

Company/Establishment

42.1

17.2

28.3

Investment Funds

14.3

11.9

(19.1)

Client Accounts

65.3

(27.9)

13.3

Source: Kuwait Stock Exchange

 

Trading by Nationality Type

Kuwaitis were the biggest investor segment in the KSE for the month of September, buying shares valued at KD1,338mn and maintained 93.8% shares of total share bought. In addition they became net buyers in September, buying shares worth KD1,338mn and selling shares worth KD1,335mn, a net buy of KD3.0mn. In September, Kuwaiti’s value of shares bought decreased 38.4% from KD2,157mn in August, while on the selling part their value decreased by 38.1% on a M-o-M basis.

 

Figure 01 :Shares of Nationalities in Value of Shares Bought (September.)                             Figure 02: Share of Nationalities in Value of Shares Sold (September.)

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Source: Kuwait Stock Exchange                                                                                               Source: Kuwait Stock Exchange

 

Their GCC counterparts’ share of the total value of shares bought has been maintained at 2.2% in September, which amounted to KD31.7mn as opposed to a selling value reaching KD42.8mn. The value of shares bought and sold decreased by 45.2% and 26.9% respectively. The GCC segment were net sellers of KD11.9mn in September 2009.

 

Table 04: Net Buying

KD mn

July

August

September

Kuwaiti

12.6

15.2

3.0

GCC

(2.4)

(0.6)

(11.1)

Others

(10.1)

(14.6)

8.1

Source: Kuwait Stock Exchange

Other nationalities became net buyers after two continuous month of being net sellers on the KSE. They bought 225.3mn shares valued at KD57.2mn and sold 212mn shares valued at KD49.1mn, a net buy of KD8.1mn.

 

The Kuwait Stock Exchange (KSE) lost 2.36% during the month of September 2009 as “Global” General Index ended the month at 219.47 points. This followed a gain of 6.35% in August-2009 while on a YTD basis the index return remained positive with a gain of 6.32%. The market capitalization reached KD35.6bn at the end of the month, registering a decline of 2.36% as compared to the previous month. The month of September witnessed lower trading activity on account of the holy month of Ramadan, and Eid holidays.          


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