Kuwait Stock Exchange’s Weekly Activity, 01-Sep-2016
Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,409.21 points, down by 0.36% from the week before closing, the Weighted Index decreased by 0.39 % after closing at 347 points, whereas the KSX-15 Index closed at 805.30 points down by 0.45%. Furthermore, last week’s average daily turnover decreased by 18.02%, compared to the preceding week, reaching K.D 5.28 million, whereas trading volume average was 51.89 million shares, recording an increase of 3.24%.
The selling operations controlled the trading flow of the market which caused its three indices to record noticeable losses on the weekly level, as the selling operations increased in light of the pressures that the leading stocks were subject to, in addition to the quick speculation that concentrated on the small-cap stocks as usual. Also, the market performance during the last week came amid a noticeable decrease in the trading activity, where the indices recorded low daily levels, especially the value, which recorded its lowest level since year 2001, as it reached K.D. 2.8 million only on Thursday.
As per the daily trading activity during the last week, the market started the week at low level all along Sunday’s session, amid a slight decrease in the liquidity level, which came as a result to the selling pressures that included a wide range of stocks, especially in the Banks sector. On Monday’s session, the red color continued to be in control amid the increased selling operations executed on the most small-cap stocks, especially the ones of market values below its par value, mostly the stocks that recorded negative results for the first half of the current year.
On the mid-week session, the market was able to realize increase for the three indices, which were able to compensate a part of its previous losses, supported by the speculative trading and the random purchasing operations which included some leading stocks, especially in the Banks sector, which positively reflected on the trading activity that witnessed a noticeable increase by the end of the session. However, the market returned on Wednesday’s session to record grouped losses for the three indices, affected by the profit collection operations that included many stocks of previous session’s increases. Also, the market witnessed by the end of the week a mixed closings for the three indices, whereas the Price index and Weighted indices continued its decline as a result to the selling for quick profit operations, while the KSX-15 Index was able to increase supported by the random purchasing operations that targeted some leading stocks, which slightly limited the index’s losses at a weekly level.
By the end of the last week, the market capitalization reached K.D. 23.30 billion, down by 0.36% compared to its level in a week earlier, where it reached then K.D. 23.38 billion. On an annual level, the market cap for the listed companies in KSE dropped by 7.78% from its value at end of 2015, where it reached then K.D. 25.27 billion.
As far as KSE annual performance, the price index ended last week recording 3.67% annual loss compared to its closing in 2015, while the weighted index decreased by 9.09%, and the KSX-15 recorded 10.56% loss.
Sectors’ Indices
Nine of KSE’s sectors ended last week in the red zone, while the other three recorded increases. The Consumer Goods sector headed the losers list as its index declined by 5.37% to end the week’s activity at 1,153.81 points. The Basic Materials sector was second on the losers’ list, which index declined by 1.01%, closing at 933.72 points, followed by the Health Care sector, as its index closed at 1,063.60 points at a loss of 0.67%. The Financial Services sector was the least declining as its index closed at 557.38 points with a 0.12% decrease.
On the other hand, last week’s highest gainer was the Technology sector, achieving 2.12% growth rate as its index closed at 970.38 points. Whereas, in the second place, the Real Estate sector’s index closed at 826.73 points recording 0.74% increase. Followed by Consumer Services sector‘s index closed at 916.25 points recording 0.37% increase.
Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 102.50 million shares changing hands during last week, representing 39.50% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 19.91% of last week’s total trading volume, with a total of around 51.66 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 8.83 million or 33.48% 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. K.D 5.28 million representing 20.02% of the total market trading value.