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Kuwait's stock market liquidity substantially declined, dropping approximately 20%, to reach KD 1.9 billion in August.

Kuwait Stock Exchange's daily trading value dropped by 12.5% in August, averaging at KD 94.1 million compared to July's average of KD 107.7 million. Over the first eight months of 2025, the exchange's total liquidity amounted to KD 17.077 billion, with a daily trading average of KD 106.7...

Stock market liquidity in Kuwait dips by 20%, reaching KD 1.9 billion in August.
Stock market liquidity in Kuwait dips by 20%, reaching KD 1.9 billion in August.

Kuwait's stock market liquidity substantially declined, dropping approximately 20%, to reach KD 1.9 billion in August.

In a recent report published by Al Rai newspaper, based on data from Al-Shall Consulting Company, the Kuwait Stock Exchange (KSE) has seen a mixed performance in August 2025.

The Main Market Index experienced a significant rise, increasing by around 2.8%. The Main Market 50 Index also showed a robust growth, with an approximately 4.9% increase. However, the General Market Index and the Premier Market Index saw a decline, falling by about 1.4% and 2.2% respectively.

Despite these movements, the report did not provide insights into the causes for these changes in the stock market's performance. The average daily trading value for August was approximately KD 94.1 million, a decrease of 12.5% compared to July's average of KD 107.7 million. The overall stock market liquidity in August was approximately KD 1.9 billion, a decrease of 20.1% compared to July's KD 2.4 billion.

Compared to the same period in 2024, the average daily trading value for 2025 increased by 98.9%. The total liquidity on the stock exchange for the first eight months of the year was approximately KD 17.077 billion.

The report highlighted that nearly half of the listed firms continue to receive minimal trading activity, with one company seeing no trading activity at all. Interestingly, twelve smaller, highly liquid companies with a market value of roughly 4.2% of the total accounted for about 30% of exchange liquidity. Conversely, fifty companies, about 35.7% of the total, received just 2.5% of the total liquidity.

Two of these companies, representing 0.4% of total market value, accounted for around 15% of total liquidity by the end of August. These findings suggest a concentration of trading activity among a select few companies.

The report, however, did not provide information about the performance of the stock market for any months other than August and July. It also did not specify which companies generated the highest trading liquidity on the KSE in the first eight months of 2025.

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