ShareKUWAIT: Boursa Kuwait announced its financial results for the first half of 2023, recording a net profit of KD 8.42 million during the period ended 30 June 2023, which represented a decrease of 21.4 percent compared to the first half of 2022. The decline can be attributed primarily to lower trading activity compared to the exceptional trading activities witnessed in the same period of 2022, which were the highest first half results for the exchange since its privatization.
In the first half of 2023, most capital markets in the Gulf Cooperation Council (GCC) and around the world witnessed a wave of turbulence and uncertainty because of the slowdown in the global economy, which was impacted by high inflation rates and the subsequent intervention of central banks to raise interest rates. Additionally, as a result of the fluctuation of oil prices and a fear that the turmoil of global banks would be transmitted to the region’s markets, many market indices saw a gradual decline in their performance, with exchanges witnessing a decrease in trading volume as well.
Despite these challenges, Boursa Kuwait remained steadfast in its commitment to promote the Kuwaiti capital market to the international investment community. The company continues to adopt the best standards and practices of global financial markets, collaborating closely with the Kuwaiti capital market apparatus to enhance market attractiveness, efficacy, efficiency, and transparency in addition to improving the corporate governance of its listed companies.
Boursa Kuwait Chairman Hamad Mishari Al-Humaidhi commented on the financial results for the first half of 2023, saying: “Boursa Kuwait has shown remarkable resilience in adapting to the fluctuations of the volatile financial markets and the challenging global economic landscape. The company remains committed to upholding the best-in-class standards and practices of the capital markets industry worldwide and works diligently to develop the market and enhance its efficiency and efficacy and improve access to it as well as strengthening the corporate governance of all its listed companies.”
Al-Humaidhi added, “Boursa Kuwait continues to promote our market and its listed companies, guided by a progressive strategy that aims to create more investment opportunities and develop a more transparent and solvent capital market through the implementation of a group of enhancements and regulatory projects as well as the technology to raise the capital market’s profile locally, regionally, and around the world. I would like to thank my fellow Board members, the Executive Team and the esteemed Boursa Kuwait employees for their efforts to develop and enhance the company and the Kuwaiti capital market.”
Boursa Kuwait has made continued strides to boost the attractiveness of the Kuwaiti capital market to foreign investments, in collaboration with its subsidiary, the Kuwait Clearing Company (KCC). These measures include late, late confirmations for international investors; omnibus accounts; and foreign investor KYC (Know Your Customer) through a global custodian, features which are available exclusively in the region to the Kuwaiti capital market. In addition, the KCC ran a series of stress tests for the Central Counterparty Clearing (CCP) system, to ensure that financial brokerage firms can fulfill its requirements and be eligible for membership. The KCC also ran tests with the Central Bank of Kuwait and local banks, as a prerequisite to launching several products like exchange traded funds (ETFs), a platform for bonds and sukuk as well as a derivatives market.
Boursa Kuwait also recently concluded its participation in the London GCC Stock Exchanges Conference, which was organized by HSBC, one of Europe’s largest banks. Additionally, Boursa Kuwait organized its tenth Corporate Day on the peripheries of the conference, bringing together twelve companies listed in the “Premier” Market, including Boursa Kuwait, with more than 50 globally recognized asset management firms and investment companies. The exchange also participated in the 17th Annual EFG Hermes One-on-One Conference in Dubai, as part of its ongoing and dedicated efforts to engage with local and international investors and raise awareness of the opportunities in the Kuwaiti capital market.
“Boursa Kuwait continues to work on providing the latest tools and solutions available in markets around the world, in collaboration with its various partners in the Kuwaiti capital market. The company also strives to attract more foreign investors and investments to the market, increasing its efficacy and facilitating access to it. In the first half of the year, we saw an increase in the rate of foreign trading as well as in the rate of trading for institutional investors, which is a reflection of investor confidence in the market and an indication of its stability in the face of the challenging worldwide economic landscape,” said Boursa Kuwait’s Chief Executive Officer Mohammad Saud Al-Osaimi.
The Kuwaiti capital market has seen an increase in foreign trading, which includes the GCC as well as international investors, by 15.9 percent year to year. Additionally, trades by institutional investors, which accounted for 58 percent of the market in the first half of 2022, have increased to 69 percent of the market, for a percentage spike of 18.4 percent.
