Net purchases by foreign investors in Kuwait surge in ’24

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The trading data for the Kuwaiti stock market indicates a growing confidence among foreign investors, particularly evident in their increased net purchases since the beginning of 2024. This confidence stems from the perceived investment opportunities across various sectors, as well as positive financial performances of banks and listed companies in the past fiscal year, reports Al-Anba daily. Foreign investors’ net purchases from January to April 2024 amounted to 94.3 million dinars, marking a significant increase compared to the same period last year, representing a 103% rise. Institutional purchases by foreigners reached 97.4 million dinars, while individual traders recorded net sales of 2.5 million dinars.

Foreign interest in the Kuwait Stock Exchange has also been bolstered by periodic reviews conducted by global indices such as Morgan Stanley (MSCI) and FTSE Russell. These reviews resulted in foreign inflows totaling 74 million dinars, with 34 million dinars attributed to the MSCI review and 40 million dinars from the FTSE review.

Meanwhile, Kuwaiti investors’ net transactions over the past year were dominated by net selling, amounting to 73.8 million dinars. Kuwaiti individuals recorded net sales of 22.3 million dinars, while institutions and companies recorded net sales of 52.2 million dinars. However, investment funds recorded net purchases totaling 5.4 million dinars. Gulf citizens’ net transactions on the Kuwait Stock Exchange during the first four months of 2024 saw selling trades totaling 20.4 million dinars. Notably, Gulf individuals recorded net purchases of 7.2 million dinars, while investment funds recorded net purchases of 1.9 million dinars.

In terms of foreign ownership in primary market shares, stability was observed in foreigners’ dealings, with ownership percentages remaining constant in 20 shares. However, foreign ownership percentages increased in 4 stocks and decreased in 9 others, resulting in a slight increase in the value of their ownership in primary market shares. The number of active trading accounts on the Kuwait Stock Exchange saw a slight increase at the end of April 2024, reaching 17.79 thousand accounts, representing a 0.45% rise from the previous month. This increase brings the percentage of active accounts to 4.18% of the total accounts eligible for trading on the stock exchange, while the majority of accounts remain inactive.