KUWAIT: In yet another testimony to the success of the private sector in enriching the stock exchange, one of the most important financial institutions in Kuwait, as well as its long term strategy to develop Kuwait’s capital market, Boursa Kuwait announced strong financial results for the first quarter of 2022, recording a significant jump of 60.67 percent in net profit (Attributable to the Equity Holders of the Parent Company) from KD 3.26 million in the first quarter of 2021 to KD 5.25 million in the first quarter of 2022. Meanwhile, the company’s earnings per share recorded an increase of 60.67 percent from 16.26 fils in the first quarter of 2021 to 26.13 fils in the first quarter of 2022.
Total operating revenue for the period increased to KD 8.79 million, an increase of 29.76 percent from KD 6.77 million in Q1 2021. Operating profit soared 65.67 percent from KD 3.81 million to KD 6.32 million, while total assets amounted to KD 121.4 million, up 9.95 percent from KD 110.42 million a year ago.
Despite the challenges stemming from the uncertainties in the global economic scene, Boursa Kuwait recorded an exceptional performance this quarter, building on the tremendous growth in trading value, which increased by 60.31 percent from around KD 2.59 billion to around KD 4.15 billion, as well as the 57. 68 percent increase in Average Daily Traded Value (ADTV) from around KD 43.11 million to about KD 67.98 million. Additionally, the traded volume increased 0.71 percent from approximately 16.82 billion shares to around 16.94 billion shares, driven by Boursa Kuwait’s continuous efforts and the support of the capital market apparatus to develop and enhance the market and ensure its adherence to the standards and practices of capital markets worldwide.
Commenting on the results, Boursa Kuwait Chairman Hamad Mishari Al-Humaidhi said: “The outstanding results of the first quarter demonstrate that Boursa Kuwait’s strategy and its efforts to develop the market as per international standards are continuing to pay off. These initiatives have helped consolidate its reputation as a leading stock exchange in the Middle East and contributed to the country’s transformation into a global investment destination, in line with the “New Kuwait 2035″ vision and the State’s National Development Plan. We are optimistic that the company will deliver superior performance through the remainder of the year on the back of strong momentum in the Kuwaiti capital market as well as the emerging markets in the GCC.”
Guided by a belief in the private sector and its ability to develop a reliable and sound capital market with ever increasing liquidity levels, Boursa Kuwait has developed into a pioneering regional company that adheres to the best-in-class international standards and practices, making it one of the standout companies in the country today, and a leader in the Kuwaiti financial scene over the past few years. The company continues to introduce innovative products and services aimed at encouraging companies to list on the exchange, working with its local, regional and international partners across the investment community.
Boursa Kuwait’s Chief Executive Officer, Mohammad Saud Al-Osaimi, also commented on the company’s first quarter results, saying: “Boursa Kuwait’s strategy to enhance the appeal of Kuwait’s capital market is yielding tremendous outcomes and attracting investors from all over the world. Thanks to the rise of oil prices and the relative stability compared to Europe and the United States, institutional investors are flocking to this region’s markets, with around KD 240 million net traded in the first quarter of 2022, which is a testament to the increasing confidence in Kuwait’s capital market.”
Osaimi added, “The performance also reflects our commitment to adding value to shareholders, exemplified by the rising dividend growth over the past few years. Looking to the future with confidence, we have laid out a clear strategy to further drive profitability growth during the coming quarters.” The Kuwaiti capital market saw marked increases in its main indices, as the “Premier” Market index recorded an increase of 18.62 percent while the “Main” Market index saw increase of 6.26 percent. Meanwhile, the “BK Main 50” index increased by 7.78 percent while the “All-Share” index improved by 15.67 percent. Furthermore, the market capitalization of Kuwait’s capital market increased from KD 41.4 billion at the end of 2021 to KD 47.97 billion in the first quarter of 2022, an increase of around 15.88 percent.
Since its inception in 2014, Boursa Kuwait 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 was fully privatized in 2019, the first government entity in the country to successfully undergo the process, bringing about greater levels of efficiency. Boursa Kuwait also self-listed in September 2020 and has made great strides in sustaining its operations and business continuity in the face of uncertainties and challenges.
Over the past six years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development (MD) plans. The company also showcases some of the standout listed companies and the investment opportunities that reside in the Kuwaiti capital market through its series of Roadshows and Corporate Days, putting these companies in touch with some of the world’s leading investment firms and financial institutions and highlighting their financial health and business strategies and outlooks, in an effort to help investors gain an in-depth understanding of the benefits and opportunities of investing in Kuwaiti companies.