Boursa Kuwait closes in red as trading activity slackens

Market capitalization records a weekly loss of over KD 157 mln

Boursa Kuwait ended last week in the red zone. The Premier Market Index closed at 5,314.90 points, down by 0.58%, the Main Market Index declined by 0.43% after closing at 4,741.54 points, and the All-Share Index closed at 5,111.34 points down by 0.53%. Furthermore, last week’s average daily turnover decreased by 38.89%, compared to the preceding week, reaching around KD 12.72 million, whereas trading volume average reached around 75.81 million shares, recording a drop of 27.23%.

Boursa Kuwait initiated the last quarter of the current year’s trading with a grouped decline to its three indices, as the Boursa performance was weak in general, amid slow trading activity and clear absence of the purchasing operations compared to the previous weeks, which in turn reflected on the cash liquidity pumped into the market that witnessed a noticeable decrease during most of the daily sessions of the week, especially during last Wednesday’s session, where the trading value dropped to below KD 10 million for the first time in around a month, and reached by the end of same session to about KD 9.63 million only.

Also, the market capitalization recorded a weekly loss of over KD 157 million, as it reached by the end of the week around KD 28.60 billion, down by 0.55% of its level in a week earlier, where it was K.D. 28.75 billion. The market cap gains since the new market segmentation reached approximately KD 740.38 million, and 2.66%. (Note: The market capitalization for the listed companies in the Market is calculated based on the weighted average number of outstanding shares as per the latest available official financial statements).

In addition, the three Boursa indices returned to meet once again in the losses zone after it declined last week, as a result to the increased selling pressures that included most of the listed stocks on one hand, and the refrain of some traders from purchasing, watching for new motivators on the other hand, especially after the end of the third quarter of the current year’s period, where the Market is entering into a general state of watch and caution waiting for the listed companies disclosured for its fiscal results, especially the results of the leading companies listed on FTSE Russell Index, which is expected to disclose its results in the few coming weeks.

Moreover, the slow pace trading witnessed by the Boursa during the last week and the absence of the purchasing activit

during most of the week’s sessions caused the trading indicators to drop clearly for the second consecutive week, whereas the total cash liquidity in all the week’s sessions reached KD 63.59 million, after being KD 104.06 million in the previous week, and the total traded volume declined from 520.80 million stock to reach 379.06 million stock.

Last week witnessed trading over 142 stock out of 175 listed stock in the Market, where prices of 38 stock increased against prices of 84 stock decreased, and prices of 53 stock remained at no change.

Eight of Boursa Kuwait’s sectors ended last week in the red zone, while three recorded increases, and the Technology Sector remained at no change. Last week’s highest loser was the Financial Services Sector, as its index declined by 1.49% to end the week’s activity at 961.54 points. The Consumer Goods Sector was second on the losers’ list, which index declined by 1.35%, closing at 833.03 points, followed by the Telecommunication Sector, which index declined by 1.17%, closing at 917.0 points.

On the other hand, last week’s highest gainer was the Health Care Sector, achieving 1.02% growth rate as its index closed at 995.60 points. The Basic Materials Sector came in the second place, as its index closed at 1,176.32 points recording 0.54% increase, followed by the Industrial Sector, achieving 0.16% growth rate as its index closed at 983.33 points. Sectors’ Activity The Financial Services Sector dominated a total trade volume of around 108.43 million shares changing hands during last week, representing 28.60% of the total market trading volume. The Banks Sector was second in terms of trading volume as the sector’s traded shares were 28.31% of last week’s total trading volume, with a total of around 107.32 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 32.69 million or 51.40% of last week’s total market trading value. The Industrial Sector took the second place as the sector’s last week turnover was approx. KD 11.80 million representing 18.55% of the total market trading value.

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