The Market ended last week’s trading with mixed closings for its three indices, as the Price Index was subject to the profit collection operations executed on the stocks of previous increases, in addition to the speculative operations that the small-cap stocks were subject to the most, while the Weighted and KSX-15 indices were able to record limited weekly gains, as a result of the collection operations that targeted some leading companies’ stocks, especially the ones that declared positive financial results and dividends for 2017. The Market witnessed such performance in light of a dropped trading indicators reaching low levels, especially the trading volume, which reached its lowest level in the year, in one of the week’s sessions.
Also, last week witnessed a trading activity on about 152 stock out of 176 listed stock in the Market, where 58 stock grew against 78 stock declined, and 40 stock remained at no change.
On the other hand, Boursa Kuwait was able to record market gains of around K.D. 108 million last week, compared to the previous week, whereas its market capitalization reached by the end of last week around K.D. 27.40 billion against K.D. 27.29 billion in the previous week, and up by 0.39%. The Market gains for Boursa Kuwait reached since the beginning of the year around K.D. 458 million, up by 1.70% compared to its value at end of year 2017, where it reached then K.D. 26.94 billion.
(Note: The Market capitalization for the listed companies in the Primary Market is calculated based on the average number of outstanding shares as per the latest available financial statements).
As far as the daily trading activity during last week; the three Market indices fluctuated during the first session in light of a weak performance and refrain from purchasing, as the Price and Weighted indices decreased affected by the selling pressures executed on some stocks, especially in the Technology and the Oil & Gas sectors, the most declining sectors by the end of the session. On the contrary, the KSX-15 Index was able to end the first session of the week with limited growth, affected by the active trading that concentrated on a number of heavy stocks. The Market witnessed such fluctuation in light of the low cash liquidity that reached about K.D. 8.7 million, where most of the liquidity concentrated on the Banks sector in particular, as this sector received 55% of the total cash liquidity during the session.
The Market witnessed in the second session a negative performance that pushed its three indices to close in the red zone, in light of the continuous refrain of the traders from investment purchasing in the Boursa, amid a noticeable activity of the quick speculative operations that targeted mainly some small-cap stocks, especially the ones that did not disclose its annual results for 2017, where the Market decline came as a result to the profit collection operations that were present during the session and included many small-cap and leading stocks, which came amid a noticeable growth to the cash liquidity that reached by the end of the session approximately K.D. 13 million. On the mid-week session however, the green colour returned once again on the Market indices, which were able to record limited gains in light of the random purchasing operations that included some stocks, especially the small-cap ones that have been traded below 100 Fils, however the leading stocks witnessed some stabilization.
For the annual performance, the Price Index ended last week recording 5.50% annual gain compared to its closing in 2017, while the Weighted Index increased by 2.66%, and the KSX-15 recorded a 4.71% growth.
Sectors’ Indices
Five of Boursa Kuwait’s sectors ended last week in the green zone, and seven recorded declines compared to its closings in the previous week. Last week’s highest gainer was the Basic Materials sector, achieving 1.89% growth rate as its index closed at 1,328.06 points. Whereas, in the second place, the Consumer Services sector’s index closed at 876.01 points recording 1.82% increase. The Industrial sector came in third, as its index achieved 0.96% growth, ending the week at 1,915.89 points.
On the other hand, the Consumer Goods sector headed the losers list as its index declined by 4.01% to end the week’s activity at 784.81 points. The Oil & Gas sector was second on the losers’ list, which index declined by 3.26%, closing at 942.89 points, followed by the Real Estate sector, as its index closed at 1,159.22 points at a loss of 1.53%.
Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 74.48 million shares changing hands during last week, representing 28.40% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 23.64% of last week’s total trading volume, with a total of around 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 25.41 million or 50.43% of last week’s total market trading value. The Industrial sector took the second place as the sector’s last week turnover was approx. K.D. 8.46 million representing 16.80% of the total market trading value.