Delivering an exceptional performance in 2019, Boursa Kuwait announced its financial results for the year ended 31 December 2019 with net profits of KD 9.6 million, an approximately 307% increase in comparison to the corresponding period in 2018, when the company recorded profits of KD 2.35 million.
The company’s total assets came in at approximately KD 36.19 million, which is a 41% increase over its 2018 total of KD 25.6 million, while shareholder equity increased from KD 22.5 million in 2018 to KD 32.1 million for the year ended 31 December 2019.
Boursa Kuwait’s Board of Directors has proposed the distribution of a final cash dividend of 25 fils per share, which is subject to shareholders’ approval at the Annual General Meeting. Earnings per share came in at 48.5 fils, as compared to 14.5 fils in 2018.
Boursa Kuwait’s Chairman, Mr. Hamad Mishari Al-Humaidhi, commented: “Boursa Kuwait has recorded an increase of over 307% in net profits in comparison to net profits for 2018, which is considered the highest since its establishment. This comes as a result of the continuous market developments and reforms we have diligently rolled out over the past few years, which has led to significant progress in our journey to become a prominent stock exchange in the Middle East and a capital market ranked by the most prominent international providers of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools.”
Boursa Kuwait’s operational and regulatory improvements led to the enhancement of the Kuwaiti capital market. Trading operations improved substanitally during 2019, with the “All-Share” closing at 23.68%, while the “Main Market” index recorded gains of 32.44%, which placed it at the forefront of the GCC markets and among the highest performing markets across the world in 2019.
The periodic review of the FTSE Russell index for Kuwait and the increase in its weight in Emerging Markets index helped attract foreign cash flows to the market, as did the inclusion of Kuwaiti companies in the S&P Dow Jones Emerging Markets index in September 2019 and the announcement of Kuwait’s reclassification to an Emerging Market in the MSCI index in December 2019, which has undoubtedly reinforced the nation’s position as a leading exchange.
In 2019, the Kuwaiti capital market witnessed an increase in the value of shares traded, amounting to 7.937 billion Kuwaiti dinars in 2019 compared to 4.138 billion Kuwaiti dinars traded during 2018. The number of traded shares increased by almost 80% during 2019, to reach 39.04 billion shares, compared to 21.71 billion shares traded during the year 2018.
The company became the only stock exchange in the Middle East owned by the private sector after finalizing its privatization process over two phases. The first phase of privatization kicked off in February 2019, when a consortium comprised of an international exchange and a group of Kuwaiti investment companies was awarded the bid for a 44% equity stake in the company. In December 2019, the privatization process was finalized after the initial public offering of the Capital Markets Authority’s 50% stake in the company was offered to Kuwaiti citizens, with an oversubscription rate of 850%.
Al-Humaidhi added: “Boursa Kuwait continues to move forward with its strategy to develop a liquid and transparent capital market, one that is fully equipped and capable to support issuer by creating platforms that allow them to communicate with regional and global investors in a manner that provides diversified investment opportunities. We continue our work towards creating an innovative capital market that is a pioneer on a local, regional and international front.”
Boursa Kuwait’s strategy has been developed to ensure alignment with the New Kuwait 2035 vision, as it contributes to strengthening not only the Kuwait economy but to the country’s transformation into a regional financial and commercial hub.