|31 March, 2020

Coronavirus plunges Boursa Kuwait 23% in Q1-20

The Kuwaiti indices collectively dropped by the end of Q1-20

A man wears a protective mask, following the outbreak of coronavirus, as he walks from the closed doors of the Kuwait Stock Exchange, in Kuwait City, Kuwait March 16,2020.

A man wears a protective mask, following the outbreak of coronavirus, as he walks from the closed doors of the Kuwait Stock Exchange, in Kuwait City, Kuwait March 16,2020.

REUTERS/Stephanie McGehee

Kuwait - The coronavirus (COVID-19) pandemic has plunged Boursa Kuwait during the first quarter (Q1) of 2020, driven by its negative consequences on the local and global economy.

The Kuwaiti indices collectively dropped by the end of Q1-20. The All-Share and the Premier markets shrank by 23.2% and 25.5%, respectively, whilst the Main and BK 50 indices fell by 16.9% and 20%, respectively.

March has accounted for most of the market’s losses as the novel virus' toll significantly surged across the globe to affect the trading activity and test investors’ nerves.

In March, the All-Share and Premier markets retreated by 20.6% and 22.8%, respectively, while the Main and BK 50 indices decreased by 14.4% and 18.2%, respectively.

Liquidity

Over the first three-month period in 2020, Boursa Kuwait’s total turnover amounted to KWD 2.38 billion ($7.6 billion).

In January, a noticeable momentum of KWD 869.5 million was generated, backed by investors’ optimism in respect of the annual financial results, not to mention the bourse’s success to lead regional markets in terms of value.

In February, the liquidity reached KWD 522.3 million during the period when the global coronavirus crisis gradually spiked.

In March, the turnover hit a three-month highest at KWD 986.82 million, with several governments approving relief packages to boost the economy and protect communities from the virus’ repercussions and others announcing partial curfews and self-isolations.

Market cap value

During the January-March period of the year, the Kuwaiti stock exchange incurred KWD 8.16 billion ($26 billion) worth of losses, posting a 22.9% annual drop.

By the end of the quarter, the market cap value amounted to KWD 27.48 billion ($87.63 billion), compared to KWD 35.64 billion ($113.65 billion) by 2019 year-end.

By the end of January 2020, the value recorded the highest monthly level at KWD 36.04 billion, while sliding to KWD 34.6 billion in February before hitting its lowest in March at KWD 27.48 billion.

Translated by: Amal A. Wahaab

Source: Mubasher

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