Boursa Kuwait market experienced a slump in April following a vigorously active March.
Boursa Kuwait Takes a Step Back in April 2025
The buzz around Boursa Kuwait, Kuwait's stock exchange, has taken a somber turn as the exchange exhibitioned less resilience in April 2025 compared to the previous month, March. The dropping trading activities and most price indicators paint a grim picture, as reported in a recent special economic report by Al-Shall Consulting.
On a gloomy note, the Premier Market Index, Main Market Index, and All-Share Index all took a hit, with decline rates ranging from 1.4% to 1.5%. The only positive light came from the Main 50 Index, which managed a slender 0.2% increase. This slight rise suggests some selective activity within a niche segment of the market, as reported by Al-Rai Arabic daily.
The market's liquidity also took a hit, with the total value of trades executed in April reaching approximately KD 2.006 billion (roughly $6.13 billion). This represented a 6.1% decrease compared to March's liquidity, which stood at KD 2.135 billion (approximately $6.5 billion). The average daily trading value for April was also impacted, settling at approximately KD 95.5 million (about $292.2 million). This represents a significant drop of 10.5% compared to the average daily value of KD 106.7 million (about $326.5 million) recorded in March.
Despite the April slump, the broader picture since the beginning of 2025 presents a more positive outlook. Over the first 77 trading days of the year, the cumulative liquidity in the market reached KD 8.722 billion (about $26.6 billion). The average daily trading value during this period stood at KD 113.3 million (around $346.6 million), marking a substantial increase of 98.4% compared to the same period in 2024, which had an average of KD 57.1 million (approximately U$174.7 million).
However, the rosy picture reveals a caveat; there's a continued imbalance in liquidity distribution. Half of the listed companies received only 3.3% of the total liquidity. Noteworthy, 50 companies accounted for just 1% of total market trades, and two companies witnessed no trading activity at all during the reported period.
This reveals a substantial concentration risk within Boursa Kuwait, with a significant portion of trading activity being dominated by a limited number of stocks, while a significant number of companies remain under-traded or entirely inactive.
The turbulent performance of Boursa Kuwait can be attributed to volatility swings driven by geopolitical and macroeconomic factors. The persistent concentration risk and the notable divergence in liquidity distribution between market segments underscore the need for structural reforms and sectoral diversification to maintain stability. The picture of the market is a delicate dance between short-term external pressures and long-term fundamentals, with the focus remaining on creating a balanced and resilient market ecosystem.
Insights- The performance of the Kuwait Stock Exchange in 2025 has been marked by volatile swings driven by geopolitical and macroeconomic factors.- The market's volatility is particularly evident in the Premier Market, which showed a sharper decline compared to the Main Market, highlighting its higher exposure to global shocks and liquidity-driven sell-offs.- The All-Share Index's YTD gains likely mask uneven sector performance, with heavyweights disproportionately influencing outcomes.- The April decline was likely the result of U.S. tariff announcements, causing a significant drop in market capitalization.- The market's resilience indicts a recovery capacity, particularly in the All-Share Index, but persistent Premier Market volatility underscores the need for diversified investor participation to mitigate concentration risks.
- In 2025, the Kuwait Stock Exchange, specifically the Premier Market, has shown noticeable volatility, with a sharper decline compared to the Main Market, influenced by global geopolitical and macroeconomic factors.
- The indices, such as the Premier Market Index, Main Market Index, and All-Share Index, experienced a decline in April 2025, with the Premier Market being the hardest hit. However, the Main 50 Index exhibited a slight increase, indicating some selective activity within a specific market segment.
- The concentration risk in Boursa Kuwait is substantial, with a significant portion of trading activity being dominated by a limited number of stocks, while a significant number of companies remain under-traded or entirely inactive, a trend that is evident up till 2025.
