10% active institutions steer market direction

983 Kuwaiti and foreign institutions control the direction of most of the liquidity traded on the stock exchange.

According to statistics obtained by Al-Rai, 983 Kuwaiti and foreign institutions control the direction of most of the funds flowing into the stocks listed on the Kuwait Stock Exchange (KSE). These institutions include 591 diverse global institutions, along with 79 Gulf institutions, all of which are active and follow the daily movement of the general weighted indices of the first and main markets.

The aforementioned active institutions represent about 10% of the total 9,971 local, Gulf, and global institutions that have portfolios and trading accounts with the Kuwait Clearing Company and invest through them by buying and selling through financial brokerage firms or through electronic trading technologies.

313 active Kuwaiti investment institutions

According to the statistics, 313 Kuwaiti investment institutions are active out of a total of 6,872 that are subject to supervision by the responsible authorities. It is also noted that the active Gulf institutions came from a total of 527 that have trading accounts in the Kuwaiti market.

Inactive Entities

On the other hand, the number of foreign and global institutions investing in the Kuwait Stock Exchange reaches 2,572. Of these, 1,981 are global institutions, the majority of which are inactive and follow the global emerging market indices, namely MSCI, FTSE Russell, and Standard & Poor’s, which include Kuwaiti companies that were included in the three upgrades.

Sources confirmed that these institutions carry out large-scale purchases and investments for the long term, while they reduce these weights according to the general path of global markets and according to technical reviews that sometimes require the sale of limited quantities or the exchange of positions. These institutions rely on a long-term investment strategy.

96.63% increase in total accounts created in the stock exchange over 10 years

On the level of the total number of accounts created in the stock exchange through the “Clearing” during the past ten years, and specifically since March 2014, it has jumped from approximately 327.5 thousand accounts to 424.2 thousand accounts, an increase of 96.63%.

These accounts are distributed among 401,058 thousand Kuwaiti accounts, including 16,653 thousand active accounts that trade regularly on the listed stocks, and all of them belong to individuals, companies, funds, institutions, banks, private portfolios, client accounts, and others.

The number of foreign accounts reached 18,464 thousand accounts distributed among individuals, companies, institutions, funds, and foreign portfolios, while the total number of Gulf accounts reached 4,605 accounts.

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