KUWAIT CITY, July 7: Al-Shall’s weekly report for June 2024 highlighted significant developments in Kuwait’s economic indicators, particularly in the oil sector and the stock market, reports Al-Qabas daily. The average price of Kuwaiti oil per barrel in June 2024 was approximately $84.9, surpassing the budgeted estimate of $70 per barrel by about $14.9 or 21.3%. This marks a slight increase of 0.6% from the average price of $84.4 per barrel in the previous fiscal year 2023-2024.

Kuwait’s expected oil revenues for June 2024 are around 1.6 billion dinars. If production levels and prices remain stable, total oil revenues for the fiscal year 2024-2025, after deducting production costs, are projected to reach approximately 20.01 billion dinars. This exceeds the budgeted estimate by 3.78 billion dinars due to higher-than-expected oil prices. With non-oil revenues estimated at about 2.42 billion dinars, total budget revenues for the fiscal year 2024-2025 are anticipated to reach approximately 22.44 billion dinars.

However, budget expenditures are expected to amount to 24.55 billion dinars, potentially resulting in a deficit of 2.11 billion dinars for the fiscal year. The outcome heavily hinges on developments in oil revenues moving forward. The Kuwait Stock Exchange experienced a less active period in June compared to May, with all indices reporting negative performance. The Premier Market Index declined by approximately -1.8%, the Main Market Index by about -0.8%, and the General Market Index by -1.6%. Similarly, the Main Market 50 Index decreased by -0.5%. Total liquidity in the stock exchange for June was 838.5 million dinars, a decrease of 34.9% from May’s liquidity of 1.28 billion dinars. The average daily trading value for June was 46.6 million dinars, down by 20.4% from May’s average of 58.5 million dinars. Overall liquidity in the first half of 2024 amounted to approximately 6.63 billion dinars, with an average daily trading value of 55.8 million dinars.

This represents a significant increase of 31.7% compared to the same period in 2023, indicating robust activity despite market fluctuations. The Premier Market dominated the stock exchange, accounting for 78.7% of liquidity, with high concentration among a few key companies. Notably, two companies, KFH and Gulf Bank, captured 36.9% of the first market’s liquidity.

Meanwhile, the main market secured 21.3% of liquidity, with a similar trend of concentration among a smaller group of companies. Comparing liquidity distribution between the first and main markets, there has been a notable increase in the main market’s share, positioning it favorably compared to its distribution throughout 2023. These insights from Al-Shall’s report underscore the dynamic economic landscape in Kuwait, influenced significantly by oil revenues and stock market performance, amid ongoing fiscal challenges and market volatility.