KUWAIT: Boursa Kuwait ended last week in the red zone. The Price Index closed at 6,849.11 points, down by 0.94 percent from the week before closing, the Weighted Index decreased by 0.50 percent after closing at 439.13 points, whereas the KSX-15 Index closed at 1,021.60 points down by 0.53 percent. Furthermore, last week’s average daily turnover decreased by 23.20 percent, compared to the preceding week, reaching KD 25.77 million, whereas trading volume average was 154.33 million shares, recording an increase of 10.91 percent.
The Boursa could not continue its upward direction that it held for four consecutive weeks, and ended last week’s trading, which was limited to four sessions only, with different losses to its three indices affected by the selling pressures and the profit collection operations that were present during most of the daily sessions of the week, and included many leading and small-cap stocks also, especially the stocks that realized various increases during the previous weeks.
Moreover, Boursa Kuwait lost more than KD 130 million from its market capitalization during the last week, after it reached by the end of it to around KD 29.35 billion, down by 0.45 percent from its level on the previous week, where it was KD 29.48 billion; while the market cap gains since the beginning of the year contracted KD 3.94 billion, and up by 15.51 percent compared to its value at end of 2016, where it reached then KD 25.41 billion. (Note: the market cap for the listed companies in the primary market is calculated based on the average number of the outstanding shares as per the latest available financial statements)
As far as the daily trading activity; Boursa Kuwait witnessed in the first session of last week a fluctuated performance for its three indices, amid a decreased trading activity on both levels, the volume or the value, especially the latter, which declined by the end of the session by 34 percent, and the Price Index ended the session recording limited loss, as a result to the selling pressures that targeted some idle small-cap stocks, while the Weighted and KSX-15 indices were able to increase supported by the positive performance of the leading stocks. On the second session of the week, the three indices dropped and closed in the red zone, affected by the profit collection operations that the leading and small-cap stocks were subject to, after the good performance it witnessed in the previous sessions, which came in parallel with the continued decrease in the cash liquidity in the market, as it dropped by more than 25 percent compared to the first session of the week.
Tuesday’s session however witnessed a return to the three indices to fluctuate again, whereas the Price Index was able to realize limited increase supported by the positive trading witnessed by the market in the last few moments of the session, while the continued selling pressures on some leading stocks for profit collection purposes, pushed the Weighted and KSX-15 indices to end the session in the red zone. The last session of the week witnessed a strong selling trend, included many stocks and headed by the leading ones, which caused its weighted indices to lose all its weekly gains, and increased the losses of the Price Index, to end the week with a decline to all its indices.
For the annual performance, the Price Index ended last week recording 19.15 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 15.53 percent, and the KSX-15 recorded 15.43 percent growth.
Nine of Boursa Kuwait’s sectors ended last week in the red zone, while two recorded increases, Whereas the Health care sector’s index closed with no change from the week before. Last week’s gainer was the Financial Services sector, achieving 0.77 percent growth rate as its index closed at 703.92 points. Followed by; the Telecommunications sector’s index closed at 620.16 points recording 0.12 percent increase.
On the other hand, The Consumer Services sector headed the losers list as its index declined 5.75 percent to end the week’s activity at 967.45 points. The Technology sector was second on the losers’ list, which index declined by 4.18 percent, closing 577.01 points, followed by the Insurance sector, as its index closed at 1,124.60 points at a loss 2.55 percent.
The Financial Services sector dominated a total trade volume of around 217.61 million shares changing hands during last week, representing 35.25 percent of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 34.49 percent of last week’s total trading volume, with a total of around 212.89 million shares.
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of around KD 37.65 million or 36.53 percent of last week’s total market trading value. The Financial Services sector took the second place as the sector’s last week turnover was approx. KD 20.39 million representing 19.78 percent of the total market trading value. — Prepared by: Studies & Research Department – Bayan Investment Co
BAYAN WEEKLY MARKET REPORT