Kuwait Stock Exchange Weekly Activity, 30-Jul-2015

Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 6,253.71 points, down by 0.52% from the week before closing, the Weighted Index decreased by 1.30% after closing at 418.91 points, whereas the KSX-15 Index closed at 1,014.93 points down by 1.30%. Furthermore, last week’s average daily turnover increased by 2.93%, compared to the preceding week, reaching K.D 12.64 million, whereas trading volume average was 141.20 million shares, recording an increase of 0.29%.The three stock market indicators declined as a result to the selling operations witnessed by the market during most of the week’s sessions, and executed on many listed stocks, both the leading and small-cap stocks, among the continued fluctuated performance the market is witnessing during this period in light of the active quick speculation and profit collection operations practiced by many traders, especially after the repetitive increases realized by the market during the previous weeks.Such losses come in parallel with the watch and cautious state that controlling many traders, waiting for the undisclosed first half financial results of the companies, especially that the legal disclosure period given for the companies to announce its results is about to end in only two weeks, which increase the investors’ fears from having such companies banned from trading if could not disclosed its results before the end of the legal period.

Despite that two thirds of the disclosure period have expired, the number of the companies that declared its results did not exceed 59 company, which is about 31% of the listed companies number of 192 company, realizing a total profit of K.D. 569.20 million compared to K.D. 546.23 million for the same period of 2014, with a growth of 4.21%.

Also, the market cap for Kuwait Stock Exchange reached by the end of last week K.D. 27.90 billion, decreasing by 1.13% compared to its level in a week before, which was K.D. 28.21 billion. On the annual level, the market cap for the listed companies in KSE dropped by 0.30% from its value at end of 2014, where it was K.D. 27.98 billion.

As far as KSE annual performance, the Price Index ended last week recording 4.31% annual loss compared to its closing in 2014, while the Weighted Index decreased by 4.55%, and the KSX-15 recorded 4.25% loss.

Sectors’ Indices

Three of KSE’s sectors ended last week in the green zone, nine recorded declines. Last week’s highest gainer was the Health care sector, achieving 13.15% growth rate as its index closed at 1,036.41 points. Whereas, in the second place, the Consumer services sector’s index closed at 1,072.54 points recording 2.18% increase. The Consumer Goods sector came in third as its index achieved 0.52% growth, ending the week at 1,258.77 points.

On the other hand, the Telecommunications sector headed the losers list as its index declined by 1.84% to end the week’s activity at 615.10 points. The Oil & Gas sector was second on the losers’ list, which index declined by 1.77%, closing at 894.94 points, followed by the Banks sector, as its index closed at 961.93 points at a loss of 1.46%.

Sectors’ Activity

The Real Estate sector dominated a total trade volume of around 334.83 million shares changing hands during last week, representing 47.42% of the total market trading volume. The Financial Services sector was second in terms of trading volume as the sector’s traded shares were 30.47% of last week’s total trading volume, with a total of around 215.11 million shares.

On the other hand, the Financial Services sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 16.63 million or 26.31% of last week’s total market trading value. The Real Estate sector took the second place as the sector’s last week turnover was approx. K.D 15.51 million representing 24.55% of the total market trading value.