Boursa Kuwait ended last week in the green zone. The Price Index closed at 6,764.28 points, up by 1.65% from the week before closing, the Weighted Index increased by 0.09% after closing at 410.66 points, whereas the KSX-15 Index closed at 946.48 points up by 0.43%. Furthermore, last week’s average daily turnover decreased by 29.23%, compared to the preceding week, reaching K.D 9.64 million, whereas trading volume average was 62.44 million shares, recording a decrease of 33.94%.
Boursa Kuwait indices were able to record mixed gains by the end of the week to compensate a part of its losses recorded in the previous period. The Boursa witnessed such performance in light of the purchasing trend that included many listed stocks especially the small-cap ones, amid optimism of some traders in the listed companies’ results for 2017, especially after finishing the Banks’ from disclosing its annual results, which were mostly positive.
Also, despite the gains recorded by the Boursa during the last week; its market capitalization declined by 1.04% compared to its level in a week earlier, where delisting of Nafais Holding Company during the last week contributed to the decline, where its market cap of K.D. 316.28 million was deducted from the total market cap of the Boursa, to reach by the end of the week K.D. 27.26 billion, compared to K.D. 27.54 billion in a week earlier. The market gains contracted since the beginning of year 2018 reaching K.D. 316 million, with a growth of 1.17% only compared to its value at the last day of the previous year, where it reached then K.D. 26.94 billion.
(Note: The market cap of the listed companies in the Regular Market is calculated based on the average number of outstanding stocks as per the latest available official financial statements).
Boursa Kuwait is currently witnessing a general state of watch by the traders, waiting for the listed companies’ results for year 2017, especially that most of the listed companies did not disclose its results yet, despite that half of the legal disclosure period have passed, and will end by the end of March 2018. In addition, the number of the listed companies that disclosed its financial results for 2017 reached by the end of last week 50 company, with around K.D. 1.39 billion in net profits, and with a growth of 12.28% compared to the same companies’ results for year 2016, where it reached around K.D. 1.24 billion.
Moreover, the Boursa initiated its first session of the week recording a noticeable drop for its three indices, affected by the profit collection operations executed on many traded stocks during the session, and headed by the leading stocks that witnessed strong increases since the beginning of the year, which negatively reflected on the performance of the Weighted and KSX-15 indices in particular, the indices that measure the performance of such stocks. The Boursa witnessed on the second session a fluctuation to its three indices, where the Price Index was able to realize good gains and was able to end the session in the green zone, to compensate all its losses recorded earlier in the week, supported by the random purchasing operations witnessed in the last minutes of the session and concentrated on a limited number of small-cap stocks, while the Weighted and KSX-15 indices continued its decline affected by the profit collection operations executed on some heavy stocks.
Furthermore, the Boursa continued its fluctuation in the mid-week session with changing positions, whereas the Weighted and KSX-15 indices were able to redirect to the green zone with relatively good gains, to compensate some of its losses recorded in the previous two sessions, while the Price Index ended the session in the red zone, affected by the quick profit collection operations that included some small-cap stocks.
On Wednesday’s session however, the market indices met in the green closing area for the first time in the week, in light of the purchasing activity that targeted the small-cap stocks, especially in the last moments of the session, which was reflected on the Price Index’s performance in particular, that clearly jumped and ended the session’s trading at its highest level in about five months. On the end of week session, the market returned to fluctuate once again, whereas the Price Index decreased as a result to the return of the quick profit collection operations to be in control over some small-cap stocks, which lightened the Index’s weekly gains, while the Weighted and KSX-15 indices continued its increase, which enabled it to transfer to the green zone on the weekly level.
For the annual performance, the Price Index ended last week recording 5.56% annual gain compared to its closing in 2017, while the Weighted Index increased by 2.30%, and the KSX-15 recorded 3.46% growth.
Sectors’ Indices
Eight of Boursa Kuwait’s sectors ended last week in the red zone, four recorded increases. The Health Care sector headed the losers list as its index declined by 9.95% to end the week’s activity at 1,396.54 points. The Industrial sector was second on the losers’ list, which index declined by 2.22%, closing at 1,803.58 points, followed by the Consumer Services sector, as its index closed at 868.23 points at a loss of 1.71%. The Basic Materials sector was the least declining as its index closed at 1,317.16 points with a 0.10% decrease.
On the other hand, last week’s highest gainer was the Real estate sector, achieving 10.89% growth rate as its index closed at 1,196.58 points. Whereas, in the second place, the Technology sector’s index closed at 527.27points recording 3.88% increase. The Oil & Gas sector came in third as its index achieved 0.66% growth, ending the week at 972.77 points.
Sectors’ Activity
The Banks sector dominated a total trade volume of around 112.71 million shares changing hands during last week, representing 36.10% of the total market trading volume. The Financial Services sector was second in terms of trading volume as the sector’s traded shares were 27.29% of last week’s total trading volume, with a total of around 85.20 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 24.13 million or 50.08% 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 8.09 million representing 16.79% of the total market trading value.