Kuwait Economic Brief - National Bank of Kuwait

April 2016
Real estate spending
sales improve
in
Government
accelerates
credit growth
strong
inFebruary;
November...Credit
growth
to close
at 7.6%
in January;
March budget
sees
2012
at 5.5%...KD
12 billion
oil prices
firm for
up FY
on2012/13
talk of
surplus
expected
output freeze
Kuwait Economic Brief
An update of recent developments
in select sectors in Kuwait published
by Economic Research at NBK
Economic Brief - April 2016
Oil Markets ..................................................Page 2
Prices rally in March as possibility of OPEC output
freeze gains traction
Trade ............................................................Page 4
Trade surplus retreats to 10-year low; import
demand steady
Monetary Developments ........................Page 5
January credit growth strong at 7.6%, while
deposits resume decline
Consumer Price Inflation ...........................Page 7
Inflation edges up to 3.3% in January; core
marginally higher too
Real Estate ..............................................Page 9
February sales improve, supported by the
commercial sector
Corporate Earnings ................................Page 11
Banks and consumer sector’s strength offset by
weakness elsewhere
Kuwait Stock Exchange ........................ Page 15
KSE underperforms region in March
CRUDE OIL PRICES, $/BBL
120
120
110
110
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
Mar-14
0
Sep-14
ICE Brent (Front month)
Mar-15
Sep-15
NYMEX WTI (Front month)
Mar-16
OPEC basket
CREDIT FACILITIES, Y/Y PERCENT GROWTH
9
9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
Jan-12
Jan-13
Jan-14
Jan-15
0
Jan-16
REAL ESTATE SALES, KD MILLION, YTD
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
Commercial
Investment
Residential
Feb-15
Feb-16
0
KUWAIT STOCK EXCHANGE
30
7000
25
6650
20
6300
15
5950
10
5600
5
5250
0
1
Mar-15
Jun-15
Sep-15
Value of traded shares (KD mn, LHS)
Dec-15
Mar-16
KSE price index (RHS)
4900
Economic Brief - April 2016
Oil Markets
Prices rally in March as possibility of OPEC output freeze
gains traction
•
Oil prices rallied for the second consecutive month
in March as talk of OPEC and Russia freezing output
gained further traction.
•
But recent comments by the Saudi deputy crown prince
on the oil freeze accord sparked a price reversal; little
change in demand-supply dynamics suggests that
markets may have gotten ahead of themselves.
•
OPEC crude oil output fell marginally to 32.3 mb/d on
supply outages in Nigeria and northern Iraq.
•
The IEA expects demand growth to outpace supply
growth this year for the first time since 2013, but
market balance is unlikely before 2017.
Oil prices boosted in March by the OPEC output freeze
agreement; but going into April, the rally looks like
running out of steam
Oil prices continued to rally through March as more OPEC
members looked to join Saudi Arabia, Qatar and Venezuela
as well as non-OPEC Russia in freezing oil production at
January’s levels. By the end of March, the international
crude benchmark, Brent, had posted its second consecutive
monthly gain, rising by 10% month-on-month (m/m) to
close at $39.6 per barrel ($/bbl). Similarly, the US marker,
West Texas Intermediate (WTI), increased by 13.6% m/m
to close at $38.3/bbl. Since falling to 12-year lows in midJanuary, oil prices have risen by almost 50%, boosted by
several factors including the output freeze announcement,
major supply outages in Nigeria and Iraq, falling US
production and a weaker US dollar.
Since its announcement in February, the provisional accord
between the two dominant oil producers, Saudi Arabia and
Russia, to freeze production has been a major fillip for oil
prices. The agreement is expected to be widened to all
OPEC members with the exception of Iran and Libya at a
meeting convened in Doha on 17 April. Non-OPEC Russia
and Oman are also on board.
ICE BRENT FORWARD PRICE CURVE, $/BBL
60
55
55
50
50
45
45
40
40
35
35
2
Mar-17
Mar-18
31-Mar-16
Of course, oil markets have a tendency to get ahead
of themselves, and the recent price rally may have
come despite only a small change in demand/supply
fundamentals. While US shale oil production-one of the
main contributors in recent years to the supply glut-has
indeed begun to contract, Iranian production has increased.
Indeed, Iran is determined to reclaim the market share it
lost to rivals while it was under international sanctions and
could realistically replace all lost US output by year-end.
Global demand growth, for its part, is expected to slow
against a weaker macroeconomic backdrop. Meanwhile,
OECD commercial crude stocks continued to accumulate,
rising by 20 million barrels in January to remain above 3
billion barrels for the third consecutive month.
Going into April, the early indications are that the twomonth rally could indeed be running out of steam. As this
report went to press, prices had fallen back below $39/bbl
after markets reacted negatively to comments made by the
Saudi deputy crown prince, Mohammed Bin Salman, which
appeared to expose divisions among oil producers ahead of
the upcoming OPEC meeting (17 April). The prince poured
cold water over the idea that Saudi Arabia would cap its
production without Iran and others following suit. Iran has,
however, repeatedly rejected any limitations being placed
on its post-sanctions oil program. The Islamic Republic has
ambitious plans to boost crude output by 1 million barrels
per day (mb/d) to 4 mb/d; only after attaining this level,
Iran says, would it be amenable to a production freeze.
2016 should see demand growth outpace supply growth
for the first time since 2013; market rebalance is not
expected until 2017
According to the International Energy Agency (IEA), world
OECD COMMERCIAL CRUDE STOCKS, BILLION BARRELS
60
30
Mar-16
The new-found optimism was reflected in the futures
markets, with hedge funds placing a record number of bets
on oil prices rising further. By the end of March, hedge
funds’ net long position totaled more than half a million
contracts, across both the New York and London futures
exchanges. This was equivalent to 579 million barrels of
crude, or 6 days of global oil demand. This helped to push
the Brent futures curve up by $3-5/bbl for crude deliveries
to 2021.
30
Mar-19
Mar-20
Mar-21
29-Feb-16 Source: Thomson Reuters Datastream
3.1
3.1
3.0
3.0
2.9
2.9
2.8
2.8
2.7
2.7
2.6
2.6
2.5
2.5
2.4
2.4
2.3
Oct-14
Jan-15
Apr-15
2.3
Jul-15
Oct-15
Jan-16
Source: International Energy Agency (IEA)
oil demand and supply are not likely to reach parity until
2017. On the demand side, growth is expected to fall from
a high of 1.8 mb/d in 2015 to its historical average of 1.2
mb/d this year. Demand is expected to remain flat in 2017.
The IEA has stressed, however, that it sees little scope for
demand growth to exceed these projections given the
uncertain global macroeconomic picture. Indeed, in view
of repeated downward revisions to estimates of global
economic growth for 2016 by the International Monetary
Fund (IMF) and others, the most recent being January’s
0.2% cut to 3.4%, the IEA sees risks as being skewed to
the downside.
On the supply side of the equation, the situation is a little
less ambiguous, with firm evidence that low oil prices are
forcing higher-cost, unconventional oil producers such as US
shale firms to cut output. Led by a decline in US production
(currently down -6% y/y at 9 mb/d), non-OPEC supply is
forecast to contract by -0.7 mb/d in 2016, according to the
IEA.
Kuwait and, significantly, Iran managed to partly offset
these losses, however.
News that Saudi Arabia and Kuwait intend to restart
production at the 300,000 b/d offshore Khafji field that
the two countries share in the Neutral Zone should provide
a welcome boost to Kuwait’s current production capacity.
Moreover, the discovery in March of a new oil field at
Manageesh in the west of the country was another bonus
for Kuwait’s oil sector as it moves ahead with its strategic
plan to reach 4 mb/d by 2020.
US CRUDE PRODUCTION AND OIL RIGS
1,800
10.0
1,600
9.5
1,400
1,200
9.0
1,000
8.5
OPEC output falls in February on supply outages in Iraq
and Nigeria
February saw OPEC crude output fall by 176,000 b/d to
32.3 mb/d, according to OPEC secondary source data.
407,000 b/d of crude were taken offline as a result of
pipeline outages in northern Iraq and Nigeria, as well as
field maintenance in the UAE. Output gains in Saudi Arabia,
BALANCE OF WORLD OIL SUPPLY AND DEMAND, MB/D
800
400
7.5
200
7.0
Mar-14
2.0
33
102
1.5
32
1.0
31
98
0.5
96
0.0
94
-0.5
92
90
-1.0
88
-1.5
0
Sep-15
Mar-16
Oil rig counts (RHS)
Source: EIA, Baker Hughes
33
32
31
30
30
29
29
28
28
27
2014
2015
2016f
Implied stock change (RHS)
2017f
2018f
2019f
2020f
2021f
World demand (LHS)
World supply (LHS)
Source: International Energy Agency (IEA)
OPEC & NON-OPEC SUPPLY GROWTH, ANNUAL CHANGE, MB/D
3.0
26
Feb-10
Feb-11
Feb-12
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
-0.5
-0.5
2015
2016f
2017f
OPEC NGLs
OPEC supply
2018f
2019f
Non-OPEC supply
-1.0
2020f
2021f
World oil supply growth
Source: IEA
Feb-13
Feb-14
Feb-15
27
Feb-16
Source: OPEC
OPEC PRODUCTION CHANGE IN FEBRUARY
-250
-200
(monthly change, kb/d)
-150
-100
-50
0
50
100
150
-250
-200
-150
50
100
150
200
Source: OPEC
3.0
-300
-1.0
Sep-14
Mar-15
Crude production (mb/d, LHS)
OPEC CRUDE OIL PRODUCTION, MB/D
104
100
600
8.0
200
OPEC-13
VNZ
UAE
KSA
QAT
NIG
LIB
KUW
IRQ
IRN
IND
ECU
ANG
ALG
-300
-100
-50
0
3
Economic Brief - April 2016
Trade
Trade surplus retreats to 10-year low; import demand
steady
Kuwait’s trade surplus narrowed to a 10-year low in 2015
mainly due to a decline in oil export earnings. Imports
remained firm however, in line with good growth in the
non-oil economy. The surplus shrank from KD 20 billion in
2014 to KD 7 billion in 2015 (20% of projected GDP). The
trade balance was mainly driven lower by a drop in oil
export revenues as a result of lower oil prices. A further
decline in non-oil export earnings and a pickup in imports
also weighed down on the overall balance. The surplus is
expected to remain under pressure while oil prices remain
low or until oil prices begin to strengthen later in the year.
Oil export receipts tumbled by 45% year-on-year (y/y) in
2015 to KD 14.7 billion, its lowest in five years. Oil export
revenues retreated amid markedly lower oil prices in 2015.
The Kuwait Export Crude (KEC) price declined 50% during
the year and averaged $47.2 per barrel. Oil export revenues
are projected to edge lower, at least in the near to medium
term, as oil prices continue to remain weak. So far in 1Q16
(as of mid-March), KEC has averaged $26.0 per barrel.
Non-oil exports continued to decline in 2015, but at a
notably lower rate of 1%. Non-oil export earnings, which
are predominantly driven by ethylene prices, continued to
contract, albeit at a slower pace, as the rate of decline in
ethylene prices moderated. A stronger Kuwaiti dinar against
BALANCE OF TRADE IN GOODS, KD BILLION
25
Import growth moderated for the most part of 2015, but
still logged in another historic high of KD 2.5 billion for the
year. The stark slowdown in imports in 3Q15 appears to
have been short-lived, following the healthy rebound in the
final quarter of 2015. The rebound came on the back of a
jump in consumer goods imports, which more than offset
the slowdown in capital goods imports. Although growth in
capital goods imports slowed down rather significantly in
4Q15, this may be a one-off, after several months of robust
growth rates. Import growth is forecast to remain strong
in the near to medium term primarily because of healthy
consumer and investment spending, shoring up non-oil GDP
growth. Growth in capital goods imports is gradually edging
higher on the back of higher spending in capital projects.
And the stronger Kuwaiti dinar, which makes imports more
affordable, is also expected to continue to support demand
for consumer and transportation goods.
FOREIGN TRADE, KD BILLION
25
20
20
15
15
10
10
5
5
0
most major currencies (with the exception of the US dollar)
has also limited any significant gains in non-oil export
growth. Having said that however, growth in 4Q15 non-oil
exports edged back into positive territory for the first time
in almost a year. This segment is expected to continue to
witness positive gains in 1Q16, on the back of a recovery
in ethylene prices.
2010
2011
2012
2013
0
2014
2015
Source: Central Statistical Bureau
OIL EXPORTS
35
Total
Imports
Trade
balance
2011
26.9
1.2
0.3
28.3
6.9
21.4
2012
30.4
1.3
0.4
32.1
7.6
24.4
2013
30.5
1.4
0.4
32.4
8.4
24.0
2014
26.8
1.3
0.5
28.6
8.8
19.8
2015
14.7
1.3
0.6
16.6
9.6
7.0
KD change
-12.1
-0.01
0.07
-12.0
0.8
-12.8
% y/y
-45.1
-1.0
13.5
-42.1
8.7
-64.7
Source: Central Statistical Bureau
IMPORTS
140
30
Exports
Oil Non-oil
Reexports
120
30
10
9
25
8
25
100
20
80
15
60
10
40
5
20
7
20
6
5
15
4
10
3
2
5
1
0
4
2010
0
2011
2012
2013
2014
2015
Oil exports (KD billion, LHS)
Oil prices ($ pb, RHS)
Source: Central Statistical Bureau, Kuwait Petroleum Corporation
0
2010
2011
2012
KD billion (LHS)
2013
%y/y (RHS)
0
2014
2015
Source: Central Statistical Bureau
Monetary Developments
January credit growth strong at 7.6%, while deposits
resume decline
Credit growth contracted in January following a large
increase in December, yet growth was still strong at
7.6%. Total credit was down by KD 117 million during
the month on declines in credit extended to non-bank
financials and for the purchase of securities. Most other
sectors were unimpressive including household borrowing,
which recorded its second consecutive month of weak
growth. Private deposits resumed their decline in January.
Meanwhile, a notable increase in interest rates was
observed, with deposit and interbank rates up during the
month.
remained higher than its 12-month average of 4.7%. Drops
came largely from lending for the purchase of securities.
Other sectors did not do as well, with real estate, trade, oil
and gas, and construction all seeing modest declines.
Household debt saw another smaller-than-usual gain for
a second consecutive month in January. Personal facilities
excluding loans for the purchase of securities gained
KD 48 million in January; growth slowed to 12.1% y/y.
Shorter term consumer loans, used to finance car and other
consumer goods purchases, declined on the month, leaving
longer tenor installment loans as the sole source of growth,
growing by 14.7% y/y, down from 15.1% a month ago.
Private deposits resumed their decline in January. Private
deposits have declined for 6 of the past 8 months. They
were down by KD 147 million on the month. Still, money
supply (M2) growth picked up to 2.0% y/y on basis
effects. Narrower money supply (M1) growth improved as
well, but remained in negative territory at -1.9% y/y. The
withdrawals in private deposits were across the board in KD
sight, KD time and foreign currency deposits.
January was a weak month for business credit, with
contractions widespread across the board. Business credit,
which excludes loans extended to investment companies,
declined by KD 118 million; growth slowed to 6.0% y/y, yet
Government deposits, which have helped offset some of
the decline in private sector deposits in recent months,
were down in January. Government deposits with domestic
banks declined by KD 101 million during the month and
Non-bank financial companies (i.e. investment companies)
saw a decline in credit of KD 46 million in January. The
sector remained in deleveraging mode, yet the pace of
decline slowed to 6.5% y/y, lower than its average pace
of decline of 7.4% in 2015, and more than half its pace
of 16.3% for 2014. This provides further evidence that the
sector may soon be done with a deleveraging phase which
followed the financial crisis.
MONEY SUPPLY, % Y/Y GROWTH
CREDIT COMPONENTS, % Y/Y GROWTH
20
20
15
15
10
10
5
5
0
0
-5
-5
30
30
25
25
20
20
15
15
10
10
-10
-10
5
5
-15
-15
0
0
-20
-20
-5
-5
-25
Jan-12
Jan-13
Household debt
-25
Jan-14
Jan-15
Jan-16
Business credit (all remaining)
Non-bank financials
Source: Central Bank of Kuwait
MONETARY HIGHLIGHTS
-10
Jan-12
Jan-13
Jan-14
M2 (LHS)
M1 (RHS)
-10
Jan-15
Jan-16
Source: Central Bank of Kuwait
BANK LIQUID RESERVES, % OF BANK ASSETS
Jan- 2016
KD mn
m/m
%
Change
3-mnth
%
Local Bank Assets
of which:
Claims on Government
Credit to Residents
Foreign Assets
58,110
-0.8
3.1
4.4
1,580
33,093
12,488
0.0
-0.4
-0.5
0.0
2.2
2.8
1.0
7.6
6.9
Money Supply (M2)
Private Deposits
KD Sight Deposits
KD Savings Deposits
KD Time Deposits & CDs
FC Deposits
34,182
32,749
7,706
4,647
16,860
3,535
-0.6
-0.4
-0.5
0.7
-0.5
-1.5
0.8
0.7
0.9
-0.5
0.4
2.9
2.0
2.1
-2.4
-3.6
3.0
18.4
y/y
%
13
13
12
12
11
11
10
10
9
9
8
Jan-12
Jan-13
Jan-14
8
Jan-15
Jan-16
Source: Central Bank of Kuwait
5
Economic Brief - April 2016
were up by KD 708 million since July 2015; their ratio to
total bank assets have risen from 9% in July 2015 to 9.9%
in January.
System liquidity is still relatively comfortable, though it has
come under some pressure recently. Banks’ liquid reserves
(which include cash and deposits with the CBK, as well as
CBK bonds) were up slightly to KD 5.1 billion in January
2016, or 8.7% of total bank assets, but down from 10-11%
before the summer.
January had seen a notable increase in dinar interest rates.
The 3-month Kuwait interbank offer rate (Kibor) climbed to
1.75% in January, rising by 70 basis points (bps) since early
2015. Rates have fallen slightly since, recording a drop of 6
bps in February 2016, dropping to 1.69%. Customer deposit
rates on dinar time deposits were also up in January,
gaining by 17-21 bps.
INTERBANK RATES, %
2.0
2.0
1.8
1.8
1.6
1.6
1.4
1.4
1.2
1.2
1.0
1.0
0.8
0.8
0.6
0.6
0.4
0.4
0.2
0.2
0.0
Mar-12
Mar-13
Mar-14
Spread
KIBOR 3M
US LIBOR 3M
0.0
Mar-15
Mar-16
Source: Thomson Reuters Datastream
EXCHANGE RATES
0.31
0.41
0.30
0.39
0.29
0.36
0.28
0.34
0.27
Mar-12
6
Mar-13
Dinar/Dollar (LHS)
0.31
Mar-14
Mar-15
Mar-16
Dinar/Euro (RHS) Source: Central Bank of Kuwait
Consumer Price Inflation
Inflation edges up to 3.3% in January; core marginally
higher too
Inflation in consumer prices edged upwards for the first
time in three months in January. Headline inflation rose
from 3.0% year-on-year (y/y) in December to 3.3%;
core inflation (which excludes food inflation) also came
in marginally higher at 2.8%. The pickup in the headline
inflation rate was mostly driven by gains in the food,
furnishings and healthcare components. With inflation
across most components expected to remain soft in the
near- to medium-term, we forecast a slightly lower annual
average reading of 3.0% in 2016, versus 3.3% in 2015.
Inflation in local food prices rose slightly in January. Food
inflation climbed from 4.6% y/y in December to 5.1% in
January, even as global food prices have been registering
declines for over a year. According to the Commodity
Research Bureau’s global commodity index, international
food prices fell by 6.8% y/y in January. With global food
prices expected to remain in decline in the medium-term,
upward inflationary pressures on local food prices are likely
to ease in the coming months.
slower pace of 0.2% y/y. The stronger dinar continues to
keep costs low in this segment in addition to the recent
end-of-season sales.
Inflation in the ‘other goods & services’ segment witnessed
a slight rebound in January as did inflation in the health
sector. Inflation in this component, which is mostly
comprised of imported items including personal care
products and jewelry, has also been dragged lower by the
stronger dinar. Meanwhile, inflation in the healthcare sector
was up; after stabilizing at 1.3% y/y for three consecutive
months, inflation in healthcare costs ticked up to 1.5% in
January.
Inflation in wholesale prices eased in the final quarter of
2015, on the back of softer gains in manufacturing, and
agriculture, livestock & fishing prices. Wholesale price
inflation eased to 2.2% y/y in 4Q15. Inflation in wholesale
food costs also subsided in the 4Q15, mainly as a stronger
dinar weighed down on imported food costs.
Inflation in furnishings & household maintenance and
clothing & footwear gathered some momentum in January.
Inflation in furnishings rose from 2.4% y/y in December
to 2.6% in January. Clothing & footwear prices continued
to decline for the tenth consecutive month, but at a much
CONSUMER PRICE INFLATION, % Y/Y
INFLATION IN HOUSING SERVICES, % Y/Y
6
6
7
7
5
5
6
6
4
4
5
5
4
4
3
3
3
3
2
2
2
2
1
1
1
1
0
Jan-11
Jan-12
General index
Jan-13
Jan-14
Core (excl. food & bev.)
0
Jan-15
Jan-16
CPI (excl. food & housing)
Source: Central Statistical Bureau
INFLATION IN FOOD PRICES, % Y/Y
10
8
0
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
0
Jan-16
Source: Central Statistical Bureau
INFLATION IN OTHER SECTORS, % Y/Y
50
40
7
7
6
6
5
5
4
4
6
30
4
20
3
3
2
10
2
2
1
1
0
0
-1
-1
-2
-2
0
0
-2
-10
-4
-20
-6
Jan-11
-30
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Kuwait prices (LHS)
International prices (6-month lag, RHS)
Source: Central Statistical Bureau, Commodity Reseach Bureau
-3
Jan-11
Jan-12
Clothing & footwear
Jan-13
Jan-14
Furnishing & h'hold maint.
-3
Jan-15
Jan-16
Other goods & services
Source: Central Statistical Bureau
7
Economic Brief - April 2016
WHOLESALE & CONSUMER PRICE INFLATION, % Y/Y
5
5
4
4
3
3
2
2
1
1
0
Jan-12
Jan-13
Jan-14
CPI
WPI
0
Jan-15
Jan-16
Source: Central Statistical Bureau
CONSUMER PRICE INFLATION, %
Month Change
Year-on-year
Annual Avg.
Dec-15
Jan-16
Dec-15
Jan-16
2014
2015
Food & beverages
0.1
0.2
4.6
5.1
2.9
3.4
Tobacco & cigarettes
0.1
0.0
1.5
1.3
7.8
6.0
Clothing & footwear
0.1
0.2
-0.6
-0.2
2.2
-0.9
Housing services*
2.9
0.0
6.0
6.0
4.4
6.0
Furnishing & h’hold maint.
0.0
0.2
2.4
2.6
4.8
3.4
Healthcare
0.0
0.3
1.3
1.5
-0.6
1.7
Transportation
-0.2
0.0
-0.6
-0.6
1.5
0.5
Communication
0.1
0.0
0.6
0.7
-0.8
0.4
Recreation & culture
0.1
0.1
-1.1
-0.5
0.9
-0.2
Education
1.6
0.0
3.5
3.5
4.7
4.4
Restaurants & hotels
-0.4
0.0
3.1
3.1
3.1
5.7
Other goods & serv.
0.0
0.5
0.3
0.6
-0.7
1.9
Core**
1.1
0.1
2.6
2.8
2.9
3.2
General Index
0.9
0.1
3.0
3.3
2.9
3.3
Source: Central Statistical Bureau, NBK estimates
*
Updated once every quarter
**
Excludes food & beverages; estimated by NBK
8
Real Estate
February sales improve, supported by the commercial
sector
Shored up by strong sales in the commercial sector, the
real estate market fared well in February as it headed into
an uncertain year. Despite the high volatility in financial
and oil markets and the prevailing geopolitical tension
in the region, February sales reached KD 261 million,
17% higher than the previous year and 22% higher than
January sales. Activity was boosted by robust sales in the
commercial sector. Price indices maintained their levels as
they continued to improve and price growth moved up a
bit.
Activity in the residential sector remained weak in February.
KD volumes and the number of transactions were down
28% and 29% year-on-year (y/y), respectively. 221 sales
contracts were registered during the month, amounting
to KD 76.7 million. Although the KD volume fared well
compared to February 2009 and 2010, the number of
transactions was the lowest on record for the month of
February.
Real estate price indices continue to hold or advance, and
provide support to the residential sector. The residentialhome price index stood at 180.2 points, 2% lower than
the previous year. Despite being in negative territory for
the last seven months, price growth has shown slow but
steady improvement since posting -6.7% y/y in November
RESIDENTIAL REAL ESTATE, YTD
2015. On the other hand, the residential-land price index
was up by 3.7% y/y to 185.1 points. Prices in this sector
experienced a short and mild correction in 2015, but appear
to have stabilized since the second half of 2015.
The continuous rise in apartment sales boosted transactions
in the investment sector in February; overall KD sales
improved slightly as well. Despite a 65% y/y increase
in transactions (of mainly smaller ticket investment
apartments) that was largely due to seasonal effects, sector
sales were up by 5.8% y/y to KD 93.9 million. This was
very similar to the performance recorded in the previous
month. Investors are more cautious in view of the high
degree of uncertainty and volatility currently roiling the oil
and financial markets.
Prices in the investment building sector are picking up
momentum. The investment-building index stood at 220.8
points, 2.3% higher than the previous year. After spending
three months in negative territory, the index bounced
back rather quickly. However, it is still early to say that the
sector averted a correction since it is more volatile than the
residential sector.
Commercial sector sales soared in February. For the first
time in eight years, commercial sector sales surpassed
residential sector sales. The sector recorded 14 transactions
worth KD 90 million; three of them were plots in Sabah
INVESTMENT REAL ESTATE, YTD
160
800
140
140
140
700
120
120
120
600
100
100
100
500
80
80
80
400
60
300
60
60
40
200
40
40
20
100
20
20
0
Feb-09
Feb-10
Feb-11
Sales (KD mn, LHS)
0
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Number of transactions (RHS) Source: Ministry of Justice
250
250
200
200
150
150
100
100
50
50
Feb-10
Feb-11
Feb-12
Homes
Feb-13
Land
Feb-09
Feb-10
Feb-11
Sales (KD mn, LHS)
0
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Number of transactions (RHS) Source: Ministry of Justice
INVESTMENT-BUILDING PRICE INDEX, 3MMA
RESIDENTIAL PRICE INDICES, 3MMA
0
Feb-09
0
Feb-14
0
Feb-15
Feb-16
Source: NBK estimates
250
250
230
230
210
210
190
190
170
170
150
150
130
130
110
110
90
90
70
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
70
Feb-15
Feb-16
Source: NBK estimates
9
Economic Brief - April 2016
Al-Ahmed Sea City worth KD 69.7 million. Transactions in
the commercial sector also included the sale of a building
in Fahaheel for KD 4 million.
The value of loans approved by Kuwait Credit Bank in
February amounted to KD 23 million, up 51% y/y. This was
supported by a healthy increase in the number of approved
loans to 477, the highest since April 2015.
COMMERCIAL REAL ESTATE, YTD
100
16
90
14
80
12
70
10
60
8
50
40
6
30
4
20
2
10
0
Feb-11
Feb-12
Feb-13
Sales (KD mn, LHS)
0
Feb-14
Feb-15
Feb-16
Number of transactions (RHS)
Source: Ministry of Justice
REAL ESTATE SALES & KCB HOUSING LOANS
m/m
y/y
Real estate sales
2014
Year average
2015
Dec
Jan
Feb
%
%
Sales values (KD mn)
Residential
Investment
355.8
158.3
151.0
253.5
113.4
102.2
248.8
126.9
78.8
213.7
89.6
96.3
257.8
76.7
91.1
20.6
-14.5
-5.4
16.5
-28.2
2.7
46.4
37.9
43.0
27.8
90.0
223.6
250.4
635
484
143
8
557.1
334.0
1,084.7
452
323
120
8
566.0
351.6
881.6
463
323
129
11
537.3
393.0
611.0
360
250
105
5
593.7
358.5
917.0
342
221
107
14
756.0
346.9
859.5
-5.0
-11.6
1.9
180.0
27.3
-3.2
-6.3
-10.5
-29.4
64.6
250.0
30.5
1.6
-37.0
4,936.8
5,185.5
3,910.0
5,564.4
6,430.5
15.6
0.1
25.4
20.8
3.3
1.3
423.3
303.3
52.2
67.8
16.9
13.1
2.5
20.1
15.5
3.1
1.4
379.5
229.2
49.4
100.9
22.0
17.5
2.8
19.8
13.9
3.6
2.3
369
204
49
116
25.7
19.8
3.6
15.5
10.9
2.3
2.2
332
157
43
132
21.9
17.3
2.3
23.2
15.2
4.9
3.1
477
225
45
207
24.5
16.6
4.9
49.9
39.3
110.2
38.8
43.7
43.3
4.7
56.8
12.3
-4.3
110.2
51.0
29.7
216.2
48.0
35.5
29.3
95.7
33.5
16.8
-2.0
91.6
1.2
1.8
2.3
2.2
3.1
38.8
98.9
Commercial
Number of transactions
Residential
Investment
Commercial
Average transaction value (000 KD)
Residential
Investment
Commercial
2015
2016
KCB housing loans
Value of approved loans (KD mn)
New construction
Purchase of existing homes
Additions & renovations
Number of approved loans
New construction
Purchase of existing homes
Additions & renovations
Value of disbursed loans (KD mn)
New construction
Purchase of existing homes
Additions & renovations
Source: Ministry of Justice / Kuwait Credit Bank
Note: Our real estate indexes database comprises 62,000 transactions. Each index combines monthly average prices (per sqm when possible) in select, more active, areas of Kuwait; it is then
adjusted for volatility. The indexes are based in 2010, i.e. 2010 price index equals 100. The indexes are not adjusted for seasonality nor for number of business days. They also do not cover the
commercial sector.
10
Corporate Earnings
Banks and consumer sector’s strength offset by weakness
elsewhere
The financial results of companies listed on the Kuwait
Stock Exchange (KSE) for 2015 were disappointing. Strong
performances by the banking and consumer sectors were
offset by weakness in the telecoms and oil and gas sectors.
The unimpressive results went largely unnoticed by the
market, which continued to be driven largely by oil prices.
The earnings of 101 Kuwaiti-listed companies totalled KD 1.2
billion in 2015, down 3.5% compared to 2014. Moreover,
reported losses bounced back, totalling KD 122 million,
which is an increase of 41% compared to 2014. The number
of loss-making companies edged up to 22 from 20.
Banks were the primary drivers of growth, with the banking
sector’s profits up a good 7% y/y. Banks benefitted from
an improving operating environment and healthy growth in
credit. With such results, bank profits continued to dominate
the listed corporate sector with a 57% share of total earnings.
Their share increased by 13 percentage points compared to
2014 as the contribution of the telecoms sector dropped.
Few other sectors saw their profits rise compared to
the same period last year. The consumer sector was the
second largest contributor to growth. The strong results of
the consumer sector were broad-based, with almost all
TOTAL PROFITS, KD BILLION
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
-0.5
-0.5
-1.0
-1.0
-1.5
-1.5
-2.0
-2.0
-2.5
2008
2009
2010
2011
Profits
-2.5
2012
2013
2014
2015
Losses
Source: Kuwait Stock Exchange
PROFITS BY SECTOR, KD MILLION
Almost all other sectors saw profits decline in 2015.
Telecommunications companies pulled corporate profits
down as earnings shrank by 20%. The two largest telecoms
companies saw notable declines in profits. The sector
has seen intensifying competition eat into profit margins,
including competition from non-traditional providers. Some
operators have also recorded foreign exchange losses related
to exposure in North Africa and other markets. Meanwhile,
the oil & gas sector saw aggregate earnings go into negative
territory. This coincided with a large decline in average oil
prices of around 45% in 2015 compared to 2014. However,
the sector is relatively small and has limited impact.
The real estate sector was another main contributor to
weakness. The sector’s total profits retreated by 15% y/y,
with the declines spread across a handful of companies. Of
course, following a record 2014, the real estate market cooled
off in 2015 on the back of falling oil prices and growing
economic concerns. Non-bank financial services companies
were also worse off in 2015, with profits declining 13% y/y.
Again, declines were recorded across the board. The sector
had been slowly recovering over the past couple of years,
but the poor performance of Kuwaiti and regional equities
in 2015 appeared to weigh on the portfolios of investment
companies. A decline in the total profits of the industrial
sector also pulled down the corporate sector, with profits for
industrials retreating a notable 40%. However, unlike the
real estate and non-bank financial sectors, the decline in the
industrial sector was largely skewed by a significant loss at
one particular company.
The less-than-impressive corporate earnings announcements
were not unexpected, so the impact on stock prices was
minimal. The KSE, like all other GCC stock markets, continued
to be driven primarily by the movement of oil prices.
SECTOR CONTRIBUTION (12M15)
Net Profits
12M14
Banks *
Basic Materials
Consumer Goods
Consumer Services
Financial Services
Healthcare
Industrials
Insurance
Oil & Gas
Real Estate
Technology
Telecommunications
Total
consumer companies seeing healthy growth in profits. The
results are in line with the robust growth seen in household
debt and consumer spending for most of 2015. Insurance was
another sector that saw a notable increase in profits, with all
reporting companies registering healthy growth. However,
this sector remains too small to have any significant impact
on the aggregates.
Growth
12M15
% y/y
633
4
15
26
77
1
52
9
15
108
19
280
679
-4
28
48
67
3
32
21
-6
92
15
224
7.3
...
79.6
81.4
-13.2
235.6
-39.8
122.8
...
-14.7
-20.9
-20.1
1,242
1,199
-3.5
* Adjusted for NBK’s consolidation of Boubyan Bank. 2%
3%
Banks*
Telecommunication
5%
Real Estate
6%
Consumer
Financial Services
8%
Industrials
57%
Other
19%
14%
* Adjusted for the NBK's consolidation of Boubyan Bank.
Source: Kuwait Stock Exchange
11
Economic Brief - April 2016
CORPORATE EARNINGS, KD THOUSAND
Code
Company
Banks
101
National Bank of Kuwait
102
Gulf Bank
103
Commercial Bank of Kuwait
104
Al-Ahli Bank of Kuwait
105
Ahli United Bank (Kuwait)
106
Kuwait International Bank
107
Burgan Bank
108
Kuwait Finance House
109
Boubyan Bank
818
Ahli United Bank
820
Ithmaar Bank
821
Warba Bank
Basic Materials
502
Kwt Pipes Industries & Oil Services Co.
511
Kuwait Foundry
514
Boubyan Petrochemical Co.
517
Al-Kout Industrial Projects Co.
526
Qurain Petrochemical Industries
Consumer Goods
619
Kuwait Slaughter House
626
National Slaughter House
637
Palms Agro Production Co.
701
Livestock Trading & Transport Co.
702
Danah Alsafat Foodstuff Co.
703
Kuwait United Poultry Co.
704
Kuwait Food Co. (Americana)
823
Mezzan Holding Company
Consumer Services
601
Kuwait National Cinema
602
Kuwait Hotels Co.
610
Sultan Center Food Products Group
615
Kuwait Cable Vision Co.
620
Eyas for Higher & Technical Education Co.
634
IFA Hotels & Resorts
645
Oula Fuel Marketing Co.
651
Kuwait Resorts Co.
654
Jazeera Airways Co.
655
Soor Fuel Marketing Co.
657
Future Kid Entertainment & Real Estate Co.
659
Al-Nawadi Holding Co.
660
Al-Rai Media Group Co.
661
Zima Holding Co.
705
United Foodstuff Industries Co.
706
Kout Food Group
Financial Services
201
Kuwait Investment Co.
202
Commercial Facilities Co.
203
International Financial Advisors Co.
204
National Investments Co.
205
Kuwait Projects Company (Holding)
207
Coast Investment & Development
209
Securities House
211
Securities Group
212
Arzan Financial Group
213
Kuwait Financial Centre
214
Kuwait & Middle East Financial Investment (KMEFIC)
218
Al-Aman Investment
219
First Investment Co.
220
Al-Mal Investment Co.
221
Gulf Investment House
222
Aayan Leasing & Investment
223
Bayan Investment Co.
225
Osoul Investment Co.
227
Kuwait Finance & Investments Co.
228
KIPCO Asset Management Co.
231
National International Holding Co.
232
Housing Finance
233
Al-Madar Finance & Investment
234
Al-Deera Holding Co.
12
12 Months
Growth
2014
2015
%
261,810
35,460
49,122
37,586
47,008
13,677
61,758
126,476
28,239
145,458
-4,401
115
282,160
39,002
46,185
30,360
42,805
16,002
76,131
145,841
35,235
161,953
-18,452
1,000
8
10
-6
-19
-9
17
23
15
25
11
…
770
...
2,424
1,800
4,946
14,918
...
-2,949
6,736
...
11,347
…
…
274
…
-24
394
273
467
-2,822
458
2,568
52,021
14,753
677
...
892
3,922
...
2,664
...
19,437
72
…
91
…
…
4
…
32
8,718
10
926
-127
1,421
-29,920
4,012
3,109
-2,887
4,094
642
2,760
5,053
-743
857
6,074
9,833
207
...
...
1,687
...
4,008
3,170
15,382
4,147
...
2,938
6,311
...
...
...
13
2,031
…
…
19
…
0
2
…
1
…
6
25
…
…
…
6,385
10,898
...
6,676
46,086
9,697
3,032
3,325
...
4,021
-1,094
3,725
4,237
-4,813
-1,670
9,752
2,509
244
1,626
1,963
950
593
...
...
...
8,573
...
-5,574
53,029
...
...
...
...
2,878
-2,421
1,466
...
...
...
...
-50
-257
0
524
315
...
...
...
…
-21
…
…
15
…
…
…
…
-28
…
-61
…
…
…
…
…
…
…
-73
-67
…
…
…
CORPORATE EARNINGS, KD THOUSAND
Code
236
237
238
240
241
242
243
244
245
246
247
248
249
250
252
436
501
513
529
611
624
631
636
811
813
817
Health Care
643
652
653
Industrials
503
504
505
506
508
509
510
512
515
516
518
519
520
522
524
525
527
603
607
609
612
614
618
623
625
628
630
632
635
639
640
642
650
658
804
805
806
807
808
Company
Al-Salam Group Holding Co.
Ektettab Holding Co.
Al-Qurain Holding Co.
Al-Madina for Finance & Investment
Noor Financial Investment
Tamdeen Investment
Kuwait Bahrain International Exchange
Taiba Kuwaiti Holding Co.
Kuwait Syrian Holding Co.
Strategia Investment Co.
Kuwait China Investment Co.
Manafae Investment Co.
Gulf North Africa Holding Co.
Amwal International Investment Co.
Al-Imtiaz Investment Group
Manazel Holding Co.
National Industries Group (Holding) Co.
United Industries Co.
Boubyan International Industries Holding
Al-Arabi Holding Co.
Privatization Holding Co.
Credit Rating and Collection Co.
Jeeran Holding Co.
Egypt Kuwait Holding (US$)
Gulf Finance House
Inovest
Al-Mowasat Healhtcare Holding Co.
Advanced Technology Co.
Yiaco Medical Co.
Kuwait Cement Co.
Refrigeration Industries & Storage Co.
Gulf Cable & Electrical Industries Co.
Heavy Engineering Ind. & Shipbuilding Co.
Kuwait Portland Cement Co.
Shuaiba Industrial Co.
Metal & Recycling Co.
ACICO Industries Co.
Gulf Glass Manufacturing Co.
Al-Hilal Cement Co.
Kuwait Packing Materials Manufacturing Co.
Kuwait Building Materials Manufacturing Co.
National Industries Co.
Equipment Holding Co.
National Consumer Holding Co.
Kuwait Gypsum Manuf. & Trading
Salbookh Trading Co.
Agility Public Warehousing Co.
Educational Holding Group
National Cleaning Co.
City Group Co.
Kuwait & Gulf Link Transport Co.
Kuwait Co. for Process Plant Cons. & Cont.
Human Soft Holding Co.
Nafais Holding Co.
Safwan Trading & Contracting Co.
Gulf Franchising Holding Co.
National Ranges Co.
Combined Group Contracting
Mushrif Trading & Contracting
United Projects Group
ALAFCO Aviation Lease & Finance Co.
Mubarrad Transport Co.
KGL Logistics Co.
Sharjah Cement (Dh)
Gulf Cement (Dh)
Umm Al-Qaiwain Cement
Fujairah Cement (Dh)
Ras-Alkhyama (Dh)
12 Months
Growth
2014
2015
%
1,975
-2,570
595
-13,947
...
9,051
742
866
-7,224
1,124
1,776
560
410
...
6,161
7,961
28,282
...
-280
...
5,038
-2,265
-5,730
-30,618
4
-1,149
...
-3,399
...
...
...
...
...
...
776
...
...
...
...
...
10,502
417
...
...
-50
...
110
-455
477
6,921
-2
-14,380
…
…
…
…
…
…
…
…
…
…
…
…
…
…
70
-95
…
…
…
…
-98
…
…
…
…
…
2,006
4,422
1,997
3,343
...
-7,051
67
…
…
17,323
3,143
4,549
2,545
8,262
1,408
445
8,335
1,826
-374
1,929
668
7,540
977
...
336
106
50,838
1,594
508
5,964
973
2,162
8,262
6,578
2,474
-136
-7,650
5,160
-2,995
5,660
4,322
1,784
5,232
5,211
4,655
473
2,055
2,662
...
3,767
-31,572
4,660
4,820
...
...
...
2,342
309
2,319
447
7,788
...
...
...
...
...
993
...
7,197
...
...
17,515
...
2,659
-314
-2,971
...
...
6,752
3,014
1,809
...
5,140
5,682
-2,155
4,186
1,283
…
20
…
83
-42
…
…
…
28
…
20
-33
3
…
…
…
…
…
-38
…
21
…
…
112
…
7
…
…
…
…
19
-30
1
…
-1
22
…
104
-52
13
Economic Brief - April 2016
CORPORATE EARNINGS, KD THOUSAND
Code
Company
Insurance
301
Kuwait Insurance Co.
302
Gulf Insurance Co.
303
Al-Ahleia Insurance Co.
304
Warba Insurance Co.
305
Kuwait Re-Insurance Co.
306
First Takaful Insurance Co.
307
Wethaq Takaful Insurance Co.
812
Kuwait Bahrain Insurance Co.
Oil & Gas
507
Contracting & Marine Services Co.
528
Ikarus Petroleum Industries
606
Safat Energy Holding Co.
608
Independent Petroleum Group
617
National Petroleum Services Co.
627
The Energy House Co.
629
Gulf Petroleum Investment
633
Burgan Co. for Well Drilling
Real Estate
239
Sokouk Holding
401
Kuwait Real Estate Co.
402
United Real Estate Co.
403
National Real Estate Co.
404
Salhia Real Estate Co.
405
Pearl of Kuwait Real Estate Co.
406
Tamdeen Real Estate Co.
408
Ajial Real Estate Entertainment Co.
409
Massaleh Real Estate Co.
410
Al-Arabiya Real Estate Co.
411
Union Real Estate Co.
412
Enma'a Real Estate Co.
413
Mabanee Co.
414
Injazzat Real Estate Development Co.
416
Investors Holding Group Co.
417
International Resorts Co.
418
Commercial Real Estate Co.
419
Sanam Real Estate Co.
420
A'ayan Real Estate Co.
421
Aqar Real Estate Investment Co.
422
Kuwait Real Estate Holding Co.
423
Al-Mazaya Holding Co.
424
Al-Dar National Real Estate
425
Al-Themar International Holding Co.
427
Tijara & Real Estate Investment Co.
428
Taameer Real Estate Investment Co.
429
Arkan Al-Kuwait Real Estate Co.
431
Al-Argan International Real Estate Co.
432
Abyaar Real Estate Development Co.
433
Munshaat Real Estate Projects Co.
434
First Dubai For Real Estate Development Co.
435
Kuwait Business Town Real Estate Co.
437
Real Estate Asset Managemnet Co. (Ream)
438
Mena Real Estate Co.
439
Al Mudon International Real Estate Co.
440
Real Estate Trade Centers Co.
441
Kuwait Remal Real Estate Co.
644
Mashaer Holding Co.
Technology
616
Automated Systems Co.
638
Al-Safat Tec Holding Co.
647
Future Communications Co.
649
Hayat Communication Co.
Telecommunication
605
Zain (Mobile Telecommunications)
613
Wataniya (National Mobile Telecommunications Co.)
621
Hits Telecom Holding Co.
822
Kuwait Telecommunication Company
14
12 Months
Growth
2014
2015
%
5,148
12,001
8,523
1,500
-16
-5,785
313
3,289
5,691
...
11,190
1,638
3,196
-832
...
2,176
917
10,113
-20,123
3,702
3,392
-1,761
...
222
...
-7,837
...
3,790
5,685
-7,910
...
...
5,012
7,126
7,876
10,479
11,422
...
7,399
636
...
1,517
...
1,952
48,175
1,517
-3,707
-1,165
18,922
-158
3,071
2,243
692
8,086
975
4,170
1,821
-2,023
3,499
4,656
755
11,577
3,548
3,162
778
-292
297
111
1,908
-6,344
...
...
8,533
...
11,626
...
...
760
...
1,758
...
140
48,518
...
-548
...
20,591
-88
2,709
2,490
...
9,319
...
-20,753
773
...
753
...
-22
...
2,030
...
927
255
...
16
...
2,374
1,499
146
777
81
...
2,310
875
183
11
…
31
9
…
…
…
-34
…
…
…
…
2
68
…
…
…
…
…
…
8
…
2
…
…
19
…
16
…
-93
1
…
…
…
9
…
-12
11
…
15
…
…
-58
…
-78
…
…
…
-43
…
19
…
…
-86
…
…
…
…
1,484
13
126
194,301
45,718
-5,571
40,364
154,314
26,671
...
42,959
-21
-42
…
6
Kuwait Stock Exchange
KSE underperforms region in March
After bouncing back with oil prices and regional equities in
February, KSE’s rally lost steam in March. The indices barely
registered any gains on the month and lagged most regional
peers. The MSCI GCC total return index gained 4%, as oil
prices stabilized somewhat and better economic data from
major economies improved sentiment. In Kuwait, profit
announcements for 2015 came in somewhat disappointing
and failed to support the market.
interest in the Kuwaiti market remained subdued as KSE
continued to underperform its regional peers.
The absence of a domestic catalyst in Kuwait’s bourse keeps
it more susceptible to international factors. Oil prices,
geopolitics and international markets will continue to be
the focus of investors.
Kuwait’s value-weighted index and the price index were
both up a mere 0.4% in March. Market capitalization gained
KD 200 million and stood at KD 24.9 billion at the close of
the month. The daily traded value averaged KD 14.4 million
in March, up 28% compared to the previous month.
Performance varied across the sectors. Basic materials
was the best performing sector, up 12.8% on the month.
Meanwhile, the healthcare and telecommunications sectors
underperformed and, once again, telecom companies
posted disappointing results, weighing on the sector’s index.
The share of foreign buyers declined in February, the latest
month for which data is available. The 3-month moving
average dropped to 13% from 14% in January. Foreign
GCC MARKETS & OIL
REGIONAL MARKETS (REBASED INDEXES)
1200
1200
1100
1100
1000
1000
900
800
700
700
1200
70
1150
1100
65
1050
60
900
800
75
1000
55
950
50
900
45
850
800
40
750
35
700
30
600
Mar-15
May-15
MSCI Kuwait
600
Mar-16
650
25
Mar-15
Jul-15
Sep-15
Nov-15
Jan-16
MSCI World
MSCI GCC
MSCI Emerging
Source: Thomson Reuters Datastream
600
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
MSCI GCC Price Index (LHS)
Brent price ($/barrel, RHS)
Source: Thomson Reuters Datastream
KSE PERFORMANCE BY SECTOR, MARCH 2016
% Change
KSE
Banks
Basic Materials
Consumer Goods
Consumer Services
Financial Services
Healthcare
Industrials
Insurance
Oil & Gas
Real Estate
Technology
Telecommunications
Parallel
Price Index
Weighted
Index
31-Mar-16
31-Mar-16
m/m
ytd
m/m
ytd
31-Mar-16
5229
810
955
1068
924
563
913
985
1072
787
822
905
607
1278
360
417
537
917
455
402
475
484
625
297
538
411
300
425
0.4
-0.1
7.1
0.3
-4.7
2.6
-9.6
1.2
0.9
4.1
0.1
2.2
-0.7
2.3
-6.9
-10.7
-3.2
-2.5
-8.4
-5.4
-1.3
-5.6
-4.9
-3.9
-12.6
10.4
1.4
4.5
0.4
-1.3
12.8
7.5
0.2
3.4
-7.0
4.8
-1.5
2.6
1.2
2.1
-3.5
0.5
-5.7
-10.0
-0.1
13.1
-2.4
-3.4
0.4
-2.8
-7.0
-6.3
-7.6
10.4
1.0
1.5
24,866
11,874
578
1,399
710
2,384
186
2,316
365
247
2,139
55
2,614
...
Price Index
Weighted
Index
Market Cap.
(KD mn)
% of
Market
100.0
47.8
2.3
5.6
2.9
9.6
0.7
9.3
1.5
1.0
8.6
0.2
10.5
...
Trading Activity
(daily average)
Price to
Earnings*
mn shares
KD mn
31-Mar-16
163.6
24.3
0.5
0.9
6.2
56.8
0.9
15.0
0.1
3.0
50.8
0.4
4.7
...
14.4
5.0
0.2
0.6
0.6
2.7
0.8
1.3
0.0
0.1
1.9
0.0
1.2
...
14.7
13.3
26.1
20.2
...
31.6
17.8
14.0
12.0
...
12.4
20.3
11.6
...
Source: Kuwait Stock Exchange, Thomson Reuters Datastream
* PE is calculated using market cap as of month close and 12 months trailing earnings.
15
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