Cash dividends of Kuwait listed firms down 60%

New report says trading on bourse now posed 'high risk' as cash liquidity drops 38%.
Cash dividends of Kuwait listed firms down 60%
By Andy Sambidge
Thu 04 Mar 2010 08:20 AM

Cash dividends distributed by companies listed on Kuwait Stock Exchange slumped by 60 percent in 2009, compared to the previous year.

According to a new report by KIPCO Asset Management Company (KAMCO), dividends paid to shareholders amounted to KD880 million in 2009, compared to KD14.2 billion in 2008.

It said a large number of companies registered at the KSE were reluctant to distribute cash dividends to shares owing to losses they had sustained.

The report, cited by KUNA News Agency, added that cash liquidity on the KSE dipped by 38 percent.

Trading at the bourse now posed high risks that could lead to more losses in invested capital, it said.

However, the quantity of shares changing hands in 2009 edged up by 7.32 percent to 6.1 billion shares against 3.8 billion shares in 2008, the report showed.

Deals by Kuwaiti investors made up around 93 percent of the total deals made in 2009, while Gulf and foreign investors had the remaining percentage.

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