KSE liquidity hits 3.7 billion dinars in Q1, but trading activity records sharp slump
. . . sees 44 percent drop in daily trading
A special economic report released by Al-Shall Consulting has revealed that total liquidity in the Boursa Kuwait reached approximately 3.723 billion dinars (around $11.39 billion) during the first quarter of 2026, covering 56 trading days.
Despite the relatively strong liquidity level, the report highlighted a significant slowdown in trading activity. The average daily trading value fell to 66.5 million dinars ($203.4 million), marking a sharp decline of 44.6 percent compared to the same period in 2025, when it stood at 119.9 million dinars.
It also dropped by 38.2 percent compared to the full-year 2025 daily average of 107.6 million dinars.
Performance indicators in March reflected further weakness, with all market indices posting declines compared to February. The First Market index fell by 1.6 percent, the Main Market by 3.0 percent, the General Market by 1.8 percent, and the Main 50 index recorded the steepest drop at 4.3 percent.
However, total liquidity for March rose slightly to 1.148 billion dinars ($3.51 billion), up 3.7 percent from 1.107 billion dinars in February. Meanwhile, the average daily trading value for March edged down by 1.8 percent to 60.4 million dinars.
The report underscored a growing imbalance in liquidity distribution across listed companies. Around half of the companies captured just 3 percent of total liquidity, with 50 firms receiving only 1 percent and four companies witnessing no trading activity at all.
In contrast, a small group of 12 companies, representing just 2.9 percent of total market value, accounted for 18.5 percent of total liquidity, highlighting a disproportionate concentration of trading activity.
At the market level, the Premier Market dominated liquidity flows, attracting 955.7 million dinars ($2.9 billion), or 83.3 percent of total liquidity. Notably, two major players, Kuwait Finance House and National Bank of Kuwait, alone accounted for 35.2 percent of total liquidity, with shares of 20.8 percent and 14.5 percent respectively.
The Main Market, by comparison, recorded 191.4 million dinars ($585.6 million), representing 16.7 percent of total liquidity. Within this segment, concentration remained high, as 20 percent of companies captured more than 75 percent of its liquidity.
The report also noted a shift in liquidity distribution compared to the same period last year, with the Main Market’s share declining significantly, reinforcing the dominance of large-cap stocks and raising concerns over limited participation across the broader market.
Overall, the findings point to a market characterized by strong liquidity volumes but uneven distribution and declining trading activity, signaling structural challenges that may weigh on investor sentiment going forward.
