Kuwait Stock Exchange’s Weekly Activity, 18-Aug-2016
Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,471.88 points, down by 0.51% from the week before closing, the Weighted Index decreased by 0.64 % after closing at 351.18 points, whereas the KSX-15 Index closed at 816.21 points down by 0.17%. Furthermore, last week’s average daily turnover increased by 13.51%, compared to the preceding week, reaching K.D 7.28 million, whereas trading volume average was 67.71 million shares, recording a decrease of 9.51%.
The three stock market indices closed in the red zone affected by the selling pressures control over the trading activity, as the selling operations witnessed by the market included many listed stocks of different kinds. Also, the quick speculations that concentrated on the small-cap stocks in particular, continued its pressure over the market indices, especially the Price Index that witnessed a noticeable fluctuation around 5,500 point.
As per the daily trading activity for Kuwait Stock Exchange during the last week; the market initiated the first session of the week with mixed closing to the three indices, whereas the Price and KSX-15 indices decreased slightly affected by the selling pressures witnessed by some small-cap stocks and a number of heavy stocks, while the leading stocks witnessed a noticeable stability that was positively reflected on the Weighted Index which closed almost at its same level. On the next session, the market indices continued its fluctuation for the second consecutive session, as the Weighted and KSX-15 indices were able to increase supported by the purchasing operations executed on some leading stocks, while the Price Index continued recording losses in light of the continued selling pressures over the small-cap stocks especially of companies that delayed its disclosure of its financial data for the second quarter period of the current year, amid traders’ fears of refraining such stocks from trading if such data were not announced prior to the end of the legal disclosure period.
Also, the three stock market indices were able to end the mid-week session within the green zone, in light of the return of the purchasing operations’ control once again over the trading activity, amid an interaction of many traders with the first quarter results disclosed by many companies that were subject to suspension, in addition to the speculative operations that contributed in enhancing the market gains. However on Wednesday and Thursday’s sessions, the market was subject to violent losses where the three indices lost all its previously realized gains, affected by the selling pressures and the profit collection operations executed on many stocks of different weights, especially the ones that disclosed negative financial results for the first half of the current year.
By the end of the week, the market cap reached K.D. 23.57 billion down by 0.57% compared to its level in a week earlier, where it reached then K.D. 23.70 billion; however on an annual level, the market cap for the listed companies in KSE declined by 6.72% from its value at end of 2015, where it was then K.D. 25.27.
As far as KSE annual performance, the price index ended last week recording 2.55% annual loss compared to its closing in 2015, while the weighted index decreased by 8.00%, and the KSX-15 recorded 9.35% loss.
Sectors’ Indices
Three of KSE’s sectors ended last week in the green zone, while the other nine recorded declines. Last week’s highest gainer was the Industrial sector, achieving 0.96% growth rate as its index closed at 1,174.75 points. Whereas, in the second place, the Insurance sector’s index closed at 1,000.70 points recording 0.82% increase. The Health Care sector came in third as its index achieved 0.46% growth, ending the week at 1,048.66 points.
On the other hand, the Consumer Services sector headed the losers list as its index declined by 2.75% to end the week’s activity at 919.17 points. The Basic Materials sector was second on the losers’ list, which index declined by 2.57%, closing at 949.03 points, followed by the Telecommunication sector, as its index closed at 591.92 points at a loss of 1.58%.
Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 154.83 million shares changing hands during last week, representing 45.73% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 18.31% of last week’s total trading volume, with a total of around 61.98 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 9.40 million or 25.79% 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 8.10 million representing 22.24% of the total market trading value.