KUWAIT CITY, Jan 8: Throughout 2023, Boursa Kuwait witnessed a notable shift in the market value of non-Kuwaiti ownership in Kuwaiti banks, reflecting a decline of 8%. The aggregate value reached 3.561 billion dinars by the end of December, down from 3.873 billion dinars recorded at the close of 2022. This decline in non-Kuwaiti ownership is intricately tied to the broader dynamics influencing the banking sector’s market valuation on the stock exchange.

Analyzing the broader market trends, the banking sector experienced an 8.3% decrease in its overall market value during 2023, translating to a significant reduction of about 2.217 billion dinars. Despite the general downturn, foreign ownership exhibited a 3.4% uptick in December, culminating in a total value of 3.561 billion dinars by the month’s conclusion.

This particular surge in foreign ownership towards the end of the year suggests some recovery and stabilization in the market. Digging deeper into the specifics, the first market, which includes seven local banks, saw a 2.4% increase in its market value during December, reaching 31.821 billion dinars. However, this positive monthly performance didn’t counterbalance the overall annual decrease, which amounted to approximately 5.56 billion dinars or a 13.8% downturn. Individual banks showcased varying trends in foreign ownership. Notably, the National Bank of Kuwait witnessed the most significant decline, with foreign ownership decreasing by 13.7%, from 2.012 billion dinars in December 2022 to 1.736 billion dinars by December 27, 2023.

In contrast, KFH experienced a 2.6% increase, reaching 1.375 billion dinars in foreign ownership. Boubyan Bank recorded a substantial decrease of 17.3% in foreign ownership, amounting to 145.74 million dinars. Other banks, such as Gulf Bank and Burgan Bank, also witnessed foreign ownership values decline throughout 2023. Despite a positive monthly performance in December, indicated by a 2.2% increase in the market value of listed companies, the overall market value experienced a 13.8% reduction during the year, totaling about 6.4 billion dinars. This decline is reflective of various market dynamics and challenges that influenced both the broader market and the banking sector specifically throughout

By Ahmad Fathi
Al-Seyassah/Arab Times Staff