From turnover to valuation, KSE ends 2025 on a high note as liquidity soars

A special economic analysis has revealed that the Kuwait Stock Exchange (KSE) closed 2025 on a markedly stronger footing, recording a sharp surge in trading activity, market depth and overall valuation, underscoring renewed investor confidence.

According to the report, total market liquidity climbed to approximately 26.5 billion dinars, representing a 79.2 percent jump compared with 2024 levels of around 14.8 billion dinars. This expansion was mirrored in trading efficiency, as the share turnover ratio rose from 0.34 times in 2024 to nearly 0.50 times by the end of 2025.

The study, issued by Al-Shall Consulting, showed that the average daily trading value increased by nearly 80 percent, reaching about 107.6 million dinars (roughly $328.2 million), up from an average of 59.8 million dinars ($182.3 million) in the previous year.

Liquidity distribution across the market also shifted noticeably. The Premier Market, comprising 34 companies, accounted for 56.4 percent of total trading liquidity in 2025, while the Main Market, with 106 listed firms, captured 43.6 percent.

This marked a rebalancing from 2024, when the Premier Market dominated with 66.3 percent, leaving just 33.7 percent for the Main Market.

On the performance front, the general index delivered a solid gain, closing 2025 at an average level of 8,907.6 points, up 1,545.1 points, or roughly 21 percent, from 7,362.5 points at the end of 2024. The index reached its annual peak on December 14, touching 9,083.5 points, while its lowest point was recorded early in the year on January 5, at 7,416.4 points.

Market capitalization followed the same upward trajectory. By the end of 2025, the combined value of listed companies stood at around 53.2 billion dinars ($162.4 billion), reflecting an increase of 9.6 billion dinars ($29.5 billion) or approximately 22 percent year on year. A total of 112 companies saw their market value rise, while 28 firms recorded varying declines.

Sector-wise, banking emerged as the primary engine of value creation, adding about 5.7 billion dinars ($17.6 billion) in market capitalization. The real estate sector followed, posting gains of roughly 1.4 billion dinars ($4.5 billion). In contrast, the basic materials sector registered the steepest contraction, shedding about 43.7 million dinars ($133.2 million).

At the company level, Kuwait Finance House delivered the largest increase in market value, rising by approximately 2.1 billion dinars ($6.5 billion), followed by the National Bank of Kuwait, which added about 1.41 billion dinars ($4.3 billion) compared with their valuations at the end of 2024.

Despite shifts in liquidity patterns, the banking sector maintained its dominance, accounting for 60.9 percent of total market capitalization, while ranking second in trading activity with around 26.8 percent of overall liquidity.

The financial services sector contributed 11.4 percent of total market value but emerged as the largest liquidity driver, absorbing nearly 30 percent of total trading.

Meanwhile, real estate ranked third, representing 8.1 percent of listed company value and attracting about 17.8 percent of market liquidity.