- Kuwaiti investors pumped $ 3 billion in US stocks in March, with lower prices
- Kuwaiti investments were not limited to American companies, but rather extended to foreign companies’ shares
Kuwaiti investments in US stocks recorded the largest selling operations since January 2015, as they reached 8.7 billion dollars, an increase of 250% compared to March.
It appears that the Kuwaiti investor is speculating in the American stock markets, as there was a reverse process in the month of March, when Kuwaiti investments witnessed huge purchasing operations benefiting from the strong decline in stock prices this month due to the implications of the month of Corona.
The month of March has witnessed a 300% increase in Kuwaiti investments in American stocks, which is likely to have strong profits in April, as April saw a jump in American stocks after it was agreed to pump about two trillion dollars and the announcement of the American Central For unprecedented incentive programs.
The net exit of Kuwaiti investments from American shares reached about 7 billion dollars during the month of April, as the volume of sales was 8.7 billion dollars against purchases amounting to 1.6 billion dollars. The Kuwaiti investments witnessed pumping of 3 billion dollars during the trading month of March.
The pumping of $ 3 billion in net purchase investment from Kuwaiti investments during the month of March coincided with sharp declines in US stocks, as the Dow Jones index declined during the course of March 13.7%, and the S&P 500 index declined 12.5% at the end of the month.
On the other hand, Kuwaiti investments tended to sell during April trading, as the sale coincided with a big rise in the major US stock market indices, as the Dow Jones Index rose 11.1%, and the S&P 500 index increased by 12.7% during April.
Selling shares and buying bonds
Kuwaiti investments were not limited to the shares of American companies only, but extended to the shares of foreign companies listed on the American stock exchanges and bonds of local and foreign companies, bringing the total Kuwaiti purchases in those financial investments combined to more than 7.3 billion dollars during the transactions of the month of April.
And those purchases were offset by sales of various investment instruments valued at $ 12.5 billion, to record Kuwaiti net investments in all investment vehicles listed on the American stock exchanges during April transactions of $ 5.2 billion, exits from the American markets.
While the directions of Kuwaiti investment varied according to the different securities, the sale controlled all shares to extend from American companies ’shares to foreign non-American companies listed on the American stock exchanges, but at a lower value, as the Kuwaitis sold foreign shares worth $ 615 million in exchange for purchases valued at 398 million dollars, with out investments of those shares, worth 217 million dollars.
While Kuwait increased its holdings of US treasury bonds during the month of April by 11% on a monthly basis by $ 4.4 billion, and this increase comes in contradiction to most of the Gulf countries that reduced their holdings of American bonds amid the continuing Corona pandemic, so that the value of Kuwait’s possession of US bonds reached 44.5 billion A dollar is higher than last March’s levels of $ 40.1 billion.
The large increase in Kuwaiti transactions in the American markets over the two months (April and March) indicates approximately $ 14 billion to major players from Kuwaiti institutions and funds, led by the Kuwaiti Sovereign Fund, which invests about half of its total investments of $ 592 billion, according to Fitch Ratings Rating Credit in the American financial markets is different between bonds and stocks and other different financial instruments.
The assets of the General Investment Authority are divided between 45% of investments in shares, 20-25% in bonds, and about 10% in real estate, as the share of alternative investments is 15%.