In Kuwait, shares and bonds are traded at Boursa Kuwait. Commonly referred to as equities, they provide opportunities for people to make money through the stock market.
All trading activity in listed securities shall be executed on the Exchange.
1. Through Trading Platform
Orders are placed through the terminals provided by brokerage companies.
Some basics regarding trading:
- Trading currency: Kuwaiti Dinar
- Price limits: 20% around the reference price.
- Reference price: price discovered in the previous closing session.6
- Price ticks:
|Stock price||Price ticks (Fils)|
|101 and above||1|
- Opening session: 08:50-09:00.
- Continuous trading session: 09:00-12:287
- Closing session: 12:28-12:3089
- Order types: Limit, Market
- Order durations: Session, Day, Good Till Date, Good Till Cancel10 , Immediate
- Trader ID (investor trading account number) is required for each order.
- Maximum order size: 5,000,000 shares
- Minimum order size: 1 share
- Trade statistics displayed on the website in real time. Daily statistics are also available at the end of each trading day through Boursa Kuwait website.
2. Sale of Large Quantities
Trades representing 5% or more of the shares of a listed company are executed through an auction that follows certain procedures. The member brokerage firms are licensed entities that are entitled to handle such transactions. Buyer side has to deposit 10% of the transaction value before the auction. The auction is organised by the Exchange and held in the Exchange Building.
3. Special Trades
Trades value exceeding a certain amount but less than 5% of the listed companies’ capital is executed through Special Trades scheme.
Trading In Unlisted Securities (Over the Counter-OTC)
The Exchange provides a platform (manual or automated) for unlisted stocks, bonds, sukuk, and repo agreements. The trading rules are different from the ones for listed securities. Trades are executed manually by the Exchange upon receiving the required documents from both buyer and seller brokers. There is no price restrictions for OTC executions. After the Exchange’s approval, buyer and seller settle cash transactions between themselves and settle securities through authorized registrars.
6 In case of a price changing corporate action the reference price discovered in the previous closing session is adjusted. For newly listed companies, there is no reference price until the first trade.
7 Continuous matching applies according to price/time priority.
8 The end of closing session is randomised.
9 Opening and closing sessions are single price auction sessions.
10 Maximum validity for Good Till Date and Good Till Cancel orders is 90 days.