Kuwait Stock Exchange liquidity soars to 22.6 billion dinars in first ten months of 2025
As the Kuwaiti market continues to expand, analysts expect policy reforms, diversification of listed companies, and increased investor education to be key factors in promoting more balanced liquidity distribution and sustainable growth in the coming years.
The liquidity of the Kuwait Stock Exchange (KSE) reached approximately 22.622 billion dinars during the first ten months of 2025, according to a specialized report published on Saturday by Al-Shall Consulting.
The report highlighted a significant increase in market activity, with the average daily trading value rising to about 111.4 million dinars, up nearly 93 percent from 57.9 million dinars in the same period last year.
October proved particularly dynamic, with liquidity climbing to around 3.267 billion dinars, an increase of 43.5 percent from September’s 2.277 billion dinars. The report attributed this to strong market performance, with the First Market Index rising 2.1 percent, the Main Market Index up 5.5 percent, the General Market Index gaining 2.7 percent, and the Main 50 Index increasing 4.1 percent.
The KSE’s General Index exceeded the 9,000-point milestone for the first time in its history, closing October at approximately 9,031.9 points. Meanwhile, the average daily trading value for the month reached 148.5 million dinars, a 36.9 percent increase compared to September’s 108.5 million dinars.
Despite the surge in overall activity, the report highlighted that liquidity distribution remains highly concentrated. Half of the listed companies accounted for just 7.7 percent of total liquidity, while 50 companies—representing about 35.7 percent of all listed companies—received only 3 percent. One company had no trading activity at all.
Interestingly, 12 relatively small but liquid companies, representing only 2.6 percent of total market value, received roughly 25.4 percent of KSE liquidity, showing a stark preference toward smaller-cap stocks. Among them, two companies with a combined market value of just 0.4 percent accounted for 11.6 percent of total trading activity, reflecting the disproportionate flow of funds in favor of certain small companies.
Looking at the markets individually, the Premier Market received 1.580 billion dinars in October, representing 48.4 percent of total KSE liquidity. Within this segment, half of the companies captured 83.07 percent of the Premier Market liquidity, equivalent to 40.5 percent of total KSE liquidity. The remaining half shared the rest, 16.3 percent.
The Main Market attracted 1.687 billion dinars, accounting for 51.6 percent of KSE liquidity. Notably, 20 percent of Main Market companies received 67.3 percent of liquidity, leaving 32.7 percent for the other 80 percent. This highlights a continued concentration of trading activity in a limited number of companies.
For the first ten months of 2025, the Main Market contributed 44.5 percent of total KSE trading value, reflecting a shift from last year, when the First Market commanded 68.7 percent of liquidity compared to 31.3 percent for the Main Market.
The report also emphasized the disparity between market capitalization and liquidity allocation, revealing that smaller-cap, highly liquid companies continue to dominate trading despite their limited market value, while many larger companies experience comparatively low activity.
Market analysts note that this concentration trend may influence investment strategies and market stability, especially for investors targeting mid- and large-cap equities.
The report coincided with recent positive macroeconomic indicators, including the price of Kuwaiti crude oil rising to $68.08 per barrel, which has provided additional market confidence and contributed to higher investor participation.
While trading activity surged, the KSE Company reported a net profit of 23.05 million dinars for the nine months ending September 30, 2025, down from 144 million dinars during the same period last year, reflecting narrower margins despite higher liquidity.
In summary, the KSE’s record-breaking liquidity and trading volumes in 2025 signal strong investor interest and market vitality, although concentrated flows among smaller-cap stocks and a decline in KSE profits indicate underlying structural challenges.
As the Kuwaiti market continues to expand, analysts expect policy reforms, diversification of listed companies, and increased investor education to be key factors in promoting more balanced liquidity distribution and sustainable growth in the coming years.
