Boursa Kuwait ended last week in the red zone. The Price Index closed at 6,628.54 points, down by 0.50% from the week before closing, the Weighted Index decreased by 1.54% after closing at 431.55 points, whereas the KSX-15 Index closed at 1,004.94 points down by 2.31%. Furthermore, last week’s average daily turnover decreased by 18.28%, compared to the preceding week, reaching K.D 25.83 million, whereas trading volume average was 131.14 million shares, recording a decrease of 20.96%.
The market was subject to the profit collection operations last week, that included many leading and small-cap stocks, amid concentration of the selling pressures on the leading stocks, especially the ones that were able to increase in the previous session, which negatively affected the Weighted and KSX-15 indices, the most declining indices compared to the Price Index. Such performance came amid a watch by some traders to the listed companies disclosures of its financial results for the 9 months of the current year, which contributed relatively to the drop in the trading rates for both of volume and value, as the average number of the traded stocks dropped during the week by 20.96% after it reached 131.14 million stock, while the cash liquidity decreased during the week by 18.28% after it reached K.D. 25.83 million.
The selling pressures witnessed by the Boursa during the last week caused it to lose more than K.D. 380 million of its market cap, which reached by the end of the week K.D. 28.89 billion, down by 1.31% from its level in a week earlier, where it was K.D. 29.41 billion. The market cap gains since the beginning of the year contracted by 13.70% compared to its value at end of 2016, where it reached then K.D. 25.41 billion. (Note: The market cap for the listed companies in the official market is calculated based on the average number of outstanding stocks as per the latest available financial statements).
As per the daily trading activity; Sunday’s session witnessed a fluctuation in the three indices’ performance, whereas the weighted indices were able to realize limited gains by the end of the session affected by the random purchasing operations that concentrated on some leading stocks, especially in the Banks sector, which are expected to disclose good fiscal results, while the Price Index declined as a result to the selling pressures that included some small-cap stocks, especially the idle and the stocks priced below its book value. The second session witnessed a meeting of the three indices in the red zone, affected by the strong profit collection operations that included many listed stocks, headed by the leading ones, amid an increased trading rates compared to the previous session, especially the cash liquidity that increased by about 45%, to reach more than K.D. 42 million.
On the mid-week session, the Boursa continued its negative performance and its three indices dropped by the end of the session affected by the increased profit collection operations on the leading stocks in particular, in addition to the speculations that included some small-cap stocks. Such performance came amid a clear decline in the trading activity, whereas the value dropped by about 34%, while the volume decreased by about 19% during the session.
The Boursa returned during Wednesday’s session to fluctuate once again, as the Weighted and KSX-15 indices continued its downward slope affected by the continued profit collection operations on the large operational stocks, while the Price Index was able to increase amid a return of the random purchasing operations on some small-cap stocks, which came in light of a drop in the liquidity levels by more than half, to reach by the end of the session about K.D. 13 million. Thursday’s session witnessed a meeting of the three indices in the green closing zone for the first time during the last week, as a result to the return of the purchasing operations once again, however limited, and came in light of the increased cash liquidity during the session , that reached by the end of the session around K.D. 15 million.
For the annual performance, the Price Index ended last week recording 15.32% annual gain compared to its closing in 2016, while the Weighted Index increased by 13.54%, and the KSX-15 recorded 13.55% growth.
Sectors’ Indices
Nine of Boursa Kuwait’s sectors ended last week in the red zone, two recorded increases, whereas the Health Care sector’s index closed with no change from the previous week. The Telecommunications sector headed the losers list as its index declined by 3.52% to end the week’s activity at 599.65 points. The Financial Services sector was second on the losers’ list, which index declined by 2.65%, closing at 687.58 points, followed by the Insurance sector, as its index closed at 1,108.25 points at a loss of 2.41%. The Banks sector was the least declining as its index closed at 962.62 points with a 0.63% decrease.
On the other hand, last week’s highest gainer was the Industrial sector, achieving 2.73% growth rate as its index closed at 1,785.09 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 1,013.33 points recording 2.13% increase.
Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 233.49 million shares changing hands during last week, representing 35.61% of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 21.75% of last week’s total trading volume, with a total of around 142.62 million shares.
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 47.47 million or 36.75% of last week’s total market trading value. The Telecommunications sector took the second place as the sector’s last week turnover was approx. K.D 33.38 million representing 25.84% of the total market trading value.