Kuwait City : Boursa Kuwait recorded a net profit of KD 4.31 million in the first quarter of 2023, a decrease of 17.8% from its recorded profit in the first quarter of 2022, which was due to the decrease in operating revenue stemming mainly from lower trading activity.

In the first quarter of 2023, most capital markets in the Gulf Cooperation Council (GCC) and around the world witnessed a wave of turbulence and uncertainty because of the slowdown in the global economy, which was impacted by high inflation rates and the subsequent intervention of central banks to raise interest rates. Additionally, the fluctuation of oil prices and a fear that the turmoil of global banks would be transmitted to the region’s markets led to the gradual decline of many of these markets’ indices as well as a decrease in trading volume. Furthermore, while GCC equity markets outperformed their global peers during 2022 in terms of index performance, most exchanges experienced a gradual drop in average daily traded value from the second half of 2022, a trend that continued during the first quarter of 2023.

Despite the challenging economic landscape in the region and around the world, Boursa Kuwait was resilient in withstanding its conditions and limiting their adverse impact on the Kuwaiti capital market. The company’s Board of Directors and Executive Management remained committed to adopting the best standards and practices of global financial markets and continued working closely with the Kuwaiti capital market apparatus to enhance the attractiveness of the market to investors, enhancing its efficacy and efficiency as well as facilitating access to it, in addition to raising its level of transparency and improving corporate governance.

In addition, the Kuwait Clearing Company (KCC), a subsidiary of Boursa Kuwait, ran a series of stress tests for the Central Counterparty Clearing (CCP) system, to ensure that financial brokerage firms can fulfill its requirements and be eligible for membership. KCC also ran tests with the Central Bank of Kuwait and local banks, as a prerequisite to launching several products like exchange traded funds (ETFs) and a platform for bonds and sukuk.  

Boursa Kuwait Chairman Mr. Hamad Mishari Al-Humaidhi commented on the quarterly results, saying: “Boursa Kuwait has shown remarkable resilience in adapting to the fluctuations of the volatile financial markets and the challenging global economic landscape. The company remains committed to upholding the best-in-class standards and practices of the capital markets industry and works diligently to enhance the market’s efficiency and efficacy and improve access to it as well as strengthening the corporate governance of all its listed companies.” 

“As we navigate through the rest of the year, we remain committed to our progressive strategy, and we will continue working on achieving the goals of our various stakeholders for the betterment of the Kuwaiti capital market and all its participants,” he added.

Boursa Kuwait has been consistently promoting the Kuwaiti capital market and its participants through its series of Roadshows and Corporate Days, which gives listed companies the opportunity to meet with some of the world’s biggest and most well-renowned asset management firms and investment companies, highlighting their financial health, business outlook, and business strategies going forward. This gives prospective institutional investors from all over the world a deeper understanding of the Kuwaiti capital market and the investment opportunities that reside within it. The company has worked diligently on enhancing the market in an effort to attract international investors to it.

“The Kuwaiti capital market witnessed an increase in GCC and foreign trading year by year, as international investors accounted for approximately 19% of the total number of trades in the first quarter of 2023, compared to around 14% during the corresponding period in 2022,” said Boursa Kuwait’s Chief Executive Officer Mr. Mohammad Saud Al-Osaimi. “This is a reflection of investor confidence in the Kuwaiti capital market and an indication of its stability relative to its counterparts internationally,” he added.

Financial Highlights of the First Quarter of 2023:

  • Net profit was recorded at KD 4.31 million
  • Earnings per share were recorded at 21.48 fils
  • Total operating revenue came in at KD 7.66 million 
  • Operating profit came in at KD 5.08 million 
  • Total assets were recorded at KD 123.30 million
  • Shareholder Equity (Attributable to equity holders of the Parent Company) was recorded at KD 52.74 million

Since its inception, Boursa Kuwait, a self-listed company and one of the first government entities to successfully undergo privatization, has worked diligently to create a thriving capital market that attracts local and foreign investors through a broad spectrum of new products and services, infrastructure upgrades, and market reform initiatives, as part of its multi-phase market development plans.  The company has implemented many steps in accordance with international practices and standards to enhance the position of the exchange regionally and globally, as well as transform Kuwait into a regional and global investment destination.

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ABOUT BOURSA KUWAIT

Since it was established by the Capital Markets Authority to take over the responsibilities of the Kuwait Stock Exchange in 2014, Boursa Kuwait has worked diligently to build a progressive exchange platform based on efficiency and transparency, with a view to creating long-term value for the company’s stakeholders in the economic, social and environmental dimensions.

Guided by a mission-driven strategy that focuses on developing the market in line with international standards, Boursa Kuwait has successfully introduced innovative investment tools, reinforced transparency, and restructured the market to increase its competitiveness and liquidity. The company’s market developments and enhancements have contributed to the reclassification of the Kuwaiti capital market to “Emerging Market” status in the world’s top three indices, strengthening Kuwait’s position as a leading financial center in the region. A self-listed exchange, Boursa Kuwait is the first government entity in the country to successfully undergo privatization.

For more information about Boursa Kuwait’s initiatives and its latest developments, please visit www.boursakuwait.com.