Bahrain Liquidity Fund boosts BHB turnover

Manama : Securities & Investment Company (SICO) announced yesterday that the US$100 million Bahrain Liquidity Fund has contributed to a substantial increase in volumes traded on the Bahrain Bourse, since its launch in June 2016. 

The Fund made a significant impact, immediately following its launch, with turnover on the Bourse improving by 67 per cent over the first five months of 2016, SICO said in a statement. 

The Bahrain Liquidity Fund was initiated and co-seeded by SICO, who is also the Fund Investment Manager, in collaboration with four co-seed investors namely Osool, BBK, Mumtalakat and NBB. 

They have invested equally in the Fund either by cash, shares in kind or a combination.

Commenting on the achievement, Najla M. Al Shirawi, Chief Executive Officer of Securities & Investment Company (SICO) said: “We are naturally delighted with the performance of the Bahrain Liquidity Fund since its launch in June 2016, which has reflected positively on market valuations and performance.”

The Fund’s total contribution to turnover for the whole year was 65 per cent, with average daily traded value improving noticeably. The value of turnover for the Bahrain Bourse grew by 2 per cent in 2016, in sharp contrast to the decline posted by all other GCC markets, with the majority witnessing a reduction of between 20 and 30 per cent, the statement added. 

“It should also be noted that average daily traded value on the Bahrain Bourse increased more than five-fold from BD192 thousand in January 2016 to BD1 million in January 2017. In that month, the Fund’s average traded value was BD362 thousand, representing 36 per cent of total daily traded value on the Bourse. When normalised for the elevated  trading activity on shares of Khaleeji Commercial Bank, average traded value on the Bahrain Bourse in January 2017 was BD 745 thousand – an increase of almost three times – of which the Bahrain Liquidity Fund represented 48 per cent,” Al Shirawi added.