Kuwait’s collective investment systems see 5.4% surge in assets

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At the end of last January, assets managed within collective investment systems experienced a notable increase of 5.4 percent, reaching a total value of 2.44 billion dinars, compared to 2.31 billion dinars in December, reports Al-Jarida daily. Statistics from the Capital Markets Authority revealed a 7.04 percent increase in the total assets of Islamic Sharia- compliant systems, reaching 989.53 thousand dinars, while traditional investment systems saw a 4.3 percent increase, totaling 1.45 billion dinars.

Money market collective investment systems held the largest share, representing 48.13 percent of licensed systems, with traditional systems accounting for 549.97 thousand dinars and Islamic ones for 625.95 thousand dinars. Securities collective investment systems followed, comprising 41.1 percent of the total assets, with traditional securities at 831.71 thousand dinars and Islamic systems at 173.05 thousand dinars.

Real estate collective investment systems accounted for 4.5 percent of total assets, with 111.37 thousand dinars, while REIT funds represented 2.4 percent at 59.74 thousand dinars. Debt instruments comprised 1.85 percent with about 45.3 thousand dinars. Existing collective investment systems for holding systems totaled 24.61 thousand dinars, about 1 percent of the total, while private equity assets amounted to 4.63 thousand dinars, representing 0.18 percent. Contractual collective investment systems represented approximately 0.67 percent, totaling 16.5 thousand dinars.

Market indices showed positive growth, with the Premier Market Index up 6.5 percent, the Main Market Index up 7.2 percent, the General Market Index up 6.6 percent, and the Main Market 50 Index up 7.9 percent. Absolute liquidity in the stock market increased significantly to about 1.478 billion dinars, up 67.2 percent from December, with an average daily trading value of approximately 67.2 million dinars, a 29.2 percent increase. The concentration of liquidity in the first market was notable, receiving 66.8 percent of the stock market’s liquidity, with the main market receiving 33.2 percent. Comparing liquidity distribution between the first and main markets showed progress in the main market’s share for January 2024 compared to 2023, indicating higher liquidity concentration levels.