Boursa grapples with surge in inactive trading accounts

Boursa grapples with surge in inactive trading accounts

KUWAIT CITY, April 4: The Boursa Kuwait has witnessed a surge in trading accounts, yet the majority of these accounts remain inactive, highlighting a concerning phenomenon, reports Al-Jarida daily. At the end of the first quarter of this year, out of the 424,530 thousand registered accounts, only 17,717 thousand were active, leaving a staggering 95.7 …KUWAIT CITY, April 4: The Boursa Kuwait has witnessed a surge in trading accounts, yet the majority of these accounts remain inactive, highlighting a concerning phenomenon, reports Al-Jarida daily. At the end of the first quarter of this year, out of the 424,530 thousand registered accounts, only 17,717 thousand were active, leaving a staggering 95.7 percent of accounts inactive. This alarming trend warrants thorough analysis to uncover the underlying causes and propose effective solutions to revitalize the market. One of the primary reasons for this stagnation is the absence of initial public offerings (IPOs), leading to a lack of fresh listings and diminishing investor interest.

The reluctance to list persists, regardless of whether the stock exchange is government-owned or privatized. Moreover, the decline in market confidence, particularly in certain companies experiencing significant losses, has further dampened investor enthusiasm. To address this challenge, there is a