Kuwait – The largest inflow of foreign investment in the stock...

• Listing shares of the stock exchange and “KFH Capital REIT” pushed market liquidity to record levels
• Kuwaitis violated the trend of foreigners and continued their exit from Kuwaiti stocks over the past month

Alaa Majeed
While the Kuwait Stock Exchange recorded record gains of about one billion dinars during the month of September, foreigners continued to pump their investments in the market during the month, which reflects the positive outlook of the market amidst many data, which was evident in the listing of Boursa Kuwait and KFH Capital REIT fund, which are Factors that pushed the stock market’s liquidity to record levels.
According to an official statistic issued by the Kuwait Stock Exchange on the volume of trading in the official market according to the nationality and category of traders, foreigners continued to buy during last September to witness their net transactions (buying and selling) about 39.4 million dinars (128.7 million dollars).
Since the beginning of this year, foreign investments in the stock exchange have tended to sell, coinciding with the spread of the Corona pandemic and the measures taken by Kuwait to deal with the negative repercussions, but net foreign transactions during September are considered the highest since the spread of the Corona pandemic, to come in second place during 2020, After last January, which recorded a net deal of about 56.2 million dinars.
The volume of inflows since last June (during the third quarter) reached 84.7 million dinars (277 million dollars). During the past nine months, the value of foreign investments that exited since the beginning of the year decreased to only 13.9 million dinars (45.4 million dollars).
Bank stocks
In terms of shares targeted by foreigners, bank shares witnessed unstoppable weekly purchases by foreigners, which pushed their holdings to reach unprecedented record levels, as their ownership in the National Bank, the largest Kuwaiti bank, rose to 16.84% by the end of last September, which did not exceed 15.5% at the end of the year. In the past, their ownership in “KFH, the largest Islamic bank,” reached 7.93% by the end of September.
Foreigners’ purchases were concentrated during September through institutions and companies, which achieved a purchase surplus of 39.2 million dinars (128.04 million dollars). The net transactions of individuals to purchase amounted to 969.6 thousand dinars (3.16 million dollars), while the net investment funds transactions tended to sell at a value of 707.5 thousand dinars (2.3 million dollars).
Foreign sales were concentrated since the beginning of the year through the portfolios of investment funds, which achieved a sale surplus of 39.15 million dinars (127.8 million dollars), while institutions and companies tended to achieve net purchasing transactions of 23.32 million dinars (76.17 million dollars). The purchase was worth 1.87 million dinars ($ 6.11 million).
Kuwaiti Sales
In view of the transactions of Kuwaiti investors, Kuwaitis increased their sales of shares during the month of September, as the sale increased from buying by 43.68 million dinars, increasing the exit of Kuwaiti investments from the stock market since the beginning of the year to 51.53 million dinars from Kuwaiti investments to the stock exchange during 2020.
The outcome of the transactions of investor groups on the Kuwaiti Stock Exchange during September showed that the sales of Kuwaiti individuals reached 538.71 million dinars, compared to purchases of 484.34 million dinars, bringing their net sales transactions to 54.36 million dinars.
In addition, local investment funds recorded a net sale of shares in the amount of 2.9 million dinars in September, through purchases of 42.07 million dinars, offset by sales of
44.97 million dinars.
While local institutions and companies recorded a net purchase of shares in September, at a value of 6.19 million dinars, through purchases of 121.09 million dinars, compared to 114.89 million dinars, sales.
The purchase operations of clients’ portfolios, which achieved a net purchase of 7.38 million dinars from their investments in the stock exchange last September, after their purchases reached 279.14 million dinars compared to sales of 271.75 million dinars.
Gulf purchases
The Gulf’s dealings were in line with the approach of foreigners this month, so they made purchases during the month of September, as the net purchase investment of the Gulf’s during the month of September came to 4.21 million dinars ($ 13.7 million) under the pressure of purchases by institutions and companies amounting to 3.79 million dinars (12.38 million dollars).
The net purchasing investment of Gulf citizens during the past 9 months amounted to 65.48 million dinars (213.87 million dollars) paid from purchases by Gulf institutions and companies whose net purchase since the beginning of the year reached 73.56 million dinars (240.26 million dollars).

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