I just sold my first lot of shares on the Kuwait Stock Exchange, for 200% returns!
People gotta fly, and airplane companies gotta lease planes, so on that note, I would like to thank ALAFCO (Aviation Leasing & Financing Co.) for making this possible for me.
A year or so ago, I decided to venture with a small amount of money onto the stock exchange of Kuwait, it was an amount that I would not mind losing, or having tied up for an extended period of time.
If you go back a couple of months, you will find I gave people pointers on how to invest in Kuwait. Now I will tell you how to sell.
You can buy stocks without the assistance of a broker easily online. Selling is the tricky part.
You have to call a number. I use Union Securities Brokerage Co. (USBC - 1837777) because they allow you to open an account for any amount you choose, unlike NBK Capital, the greedy slime, who require a minimum of KD5,000.
There are two markets in the stock exchange that I wish to talk about, Round lot and Odd lot. Round lot means multiples of 1,000+ (high value), Odd lot is a lot less than 1,000 (for example, 233 shares, perfect for the average Joe Six-Pack).
People kept telling me you can buy shares on the Odd lot market easily, but selling will be difficult. I am here to say, not so.
I called up the broker and placed my order, she asked me to call back in 5 minutes, I took a wee (pun intended) bit longer, and as I viewed this (Kuwait stock exchange odd lot order book), I found that my shares were on display, and a buyer was making a counter-offer (haggling), so she told me I was late in calling back, and that the buyer wants them for so-&-so. I reduced my original price to entice them, and BOOM! next thing I know, upon hitting refresh, my shares are gone. I get a call immediately from the broker telling me the transaction was executed. And I am not doubly richer than when I first brought the stock.
A year ago, I purchased the ALAFCO shares for 0.176fils, today, I sold them for 0.360fils. If my maths with the 200% is faulty, forgive me, but I doubled my original investment. And that is a rate of return beyond that offered by banks (interest is less than or equal to 1% right now).
If anyone has any questions on the stock market of Kuwait (anything that does not involve speculation!) please feel free to ask :)
I believe in the following formula: