KSE stocks advance on positive sentiment – BAYAN WEEKLY MARKET REPORT

bayanKUWAIT: Kuwait Stock Exchange (KSE) ended last week in the green zone. The Price Index closed at 5,794.64 points, up by 1.21 percent from the week before closing, the Weighted Index increased by 0.96 percent after closing at 394.60 points, whereas the KSX-15 Index closed at 943.56 points up by 1.02 percent. Furthermore, last week’s average daily turnover increased by 13.92 percent, compared to the preceding week, reaching KD 15.69 million, whereas trading volume average was 131.23 million shares, recording a loss of 1.04 percent.

The stock market indicators returned to close in the green zone once again, after several weeks of mixed performance, as the market received support from the purchasing powers and the collection operations that included many stocks of different sectors headed by the Telecommunications which acquired nearly 30 percent of the market liquidity during the last week, where such came in light of an optimism spread among the investors as a result to the incoming news of the acquisition deal of 74 percent of the Viva listed stocks in the official market.

In addition, the market started its first sessions of the week with good increase to its three indicators, especially the Weighted Index and KSX-15 Index which recorded good gains by the end of the session affected by the purchasing trend that the market witnessed on the large-cap stocks, which positively reflected on the trading activity in the market, especially the value which recorded high increase of about 68 percent compared to the previous session. The Market continued recording gains for the second session as a result to the continued active purchasing trend on many stocks, and in light of the increased liquidity for the second consecutive session.

However on the mid-week session, the market stopped in the profit collection station, among declined liquidity levels again, which pushed the three indices to close in the red zone, although considered normal after the good gains realized by many stocks in the previous two sessions. Also, the market returned for its grouped increase for the three indices on Wednesday and Thursday’s sessions, due to the return of the purchasing and speculations operations in controlling the trading direction, among a continued decline in the value, however in minimal percentages.

Moreover, the market cap for Kuwait Stock Exchange reached by the end of last week KD 26.22 billion, increasing by 1 percent compared to its level in a week earlier which was KD 25.96 billion. However on the annual level, the market cap for the listed companies in KSE recorded a decline of 6.29 percent from its value at end of 2014, where it reached then KD 27.98 billion.

As far as KSE annual performance, the Price Index ended last week recording 11.34 percent annual loss compared to its closing in 2014, while the Weighted Index decreased by 10.09 percent, and the KSX-15 contracted by 10.98 percent.

Sectors’ Indices
Eight of KSE’s sectors ended last week in the green zone, while the other four recorded declines. Last week’s highest gainer was the Telecommunications sector, achieving 6.85 percent growth rate as its index closed at 634.77 points. Whereas, in the second place, the Health Care sector’s index closed at 984.39 points recording 2.49 percent increase. The Industrial sector came in third as its index achieved 1.96 percent growth, ending the week at 1,069.44 points.

On the other hand, the Insurance sector headed the losers list as its index declined by 2.26 percent to end the week’s activity at 1,098.13 points. The Technology sector was second on the losers’ list, which index declined by 1.90 percent, closing at 871.80 points, followed by the Basic Materials sector, as its index closed at 1,023.78 points at a loss of 0.84 percent.

Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 211.56 million shares changing hands during last week, representing 32.24 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 25.99 percent of last week’s total trading volume, with a total of around 170.52 million shares.

On the other hand, the Telecommunications sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 23.33 million or 29.74 percent of last week’s total market trading value. The Banks sector took the second place as the sector’s last week turnover was approx. KD 16.68 million representing 21.25 percent of the total market trading value. — Prepared by the Studies & Research Department, Bayan Investment Co.

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