KSE eq­ui­ties come un­der sell­ing pres­sure

Kuwait Times - - BUSINESS -

KUWAIT: Kuwait Stock Ex­change (KSE) ended last week in the red zone. The Price In­dex closed at 5,725.41 points, down by 0.71 per­cent from the week be­fore clos­ing, the Weighted In­dex de­creased by 1.68 per­cent af­ter clos­ing at 390.84 points, whereas the KSX-15 In­dex closed at 933.99 points down by 2.16 per­cent. Fur­ther­more, last week’s av­er­age daily turnover de­creased by 15.21 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 13.77 mil­lion, whereas trad­ing vol­ume av­er­age was 132.61 mil­lion shares, record­ing a loss of 8.90 per­cent.

The stock mar­ket wit­nessed neg­a­tive per­for­mance due to the ran­dom sell­ing oper­a­tions that in­cluded many of the traded stocks dur­ing the week, which came as a re­sult to many neg­a­tive fac­tors such as the wor­ry­ing po­lit­i­cal sit­u­a­tion that the world is liv­ing dur­ing this pe­riod, in ad­di­tion to the no­tice­able cur­rent de­cline in the oil prices, which pushed the mar­ket to record no­tice­able de­creases for the three in­dices, es­pe­cially the Weighted and KSX-15 in­dices which recorded strong losses due to the profit col­lec­tion oper­a­tions that con­cen­trated on the large-cap and the op­er­a­tional stocks, es­pe­cially in the Banks sec­tor; as well many of the small-cap stocks wit­nessed ran­dom sell­ing oper­a­tions, con­cen­trated on the stocks that dis­closed neg­a­tive fi­nan­cial re­sults for the third quar­ter of the cur­rent year, es­pe­cially the in­vest­ment com­pa­nies that mostly wit­nessed var­ied losses by the end of the week, and neg­a­tively af­fected the Price In­dex per­for­mance to close in the red zone for the fourth con­sec­u­tive week.

In ad­di­tion, the stock mar­ket ini­ti­ated the week’s trad­ing ac­tiv­ity with strong losses in the first ses­sion, as it wit­nessed a vi­o­lent sell­ing trend in­cluded lots of lead­ing and small-cap stocks, which caused the three in­dices to record dif­fer­ent losses by the end of the ses­sion, and came in par­al­lel with the strong losses that hit many of the in­ter­na­tional and re­gional mar­kets af­ter the ter­ror­ist at­tacks wit­nessed in France by the end of last week. On the next ses­sion, the mar­ket was able to record lim­ited gains that com­pen­sated a part of its pre­vi­ous losses, as the three in­di­ca­tors closed in the green zone af­ter a fluc­tu­ated per­for­mance, be­fore it re­turn to the red zone on Tues­day and Wed­nes­day’s ses­sions as a re­sult to the re­turn of the ran­dom sell­ing oper­a­tions in controlling the mar­ket trad­ing ac­tiv­ity, which neg­a­tively af­fected the three in­di­ca­tors’ per­for­mance, es­pe­cially the Weighted and KSX-15 in­dices that were af­fected by the de­cline of the heavy stocks’ prices. Also, the mar­ket was able by the end of the week ses­sion to re­al­ize good growth for the three in­dices sup­ported by the ran­dom pur­chas­ing oper­a­tions that in­cluded many stocks and con­cen­trated on some lead­ing stocks, among lim­ited growth in the trad­ing value.

More­over, the mar­ket cap for Kuwait Stock Ex­change reached by the end of last week KD 25.96 bil­lion, de­clin­ing by 1.50 per­cent com­pared to its level in a week ear­lier, which was KD 26.36 bil­lion. How­ever on the an­nual level, the mar­ket cap for the listed com­pa­nies in KSE de­clined by 7.22 per­cent from its value at end of 2014 where it reached then KD 27.98 bil­lion.

As far as KSE an­nual per­for­mance, the Price In­dex ended last week record­ing 12.40 per­cent an­nual loss com­pared to its clos­ing in 2014, while the Weighted In­dex de­creased by 10.95 per­cent, and the KSX-15 con­tracted by 11.88 per­cent.

Sec­tors’ in­dices

Six of KSE’s sec­tors ended last week in the green zone, while the other six recorded de­clines. Last week’s high­est gainer was the Telecom­mu­ni­ca­tions sec­tor, achiev­ing 2.93 per­cent growth rate as its in­dex closed at 594.07 points. Whereas, in the sec­ond place, the Con­sumer Ser­vices sec­tor’s in­dex closed at 1,013.94 points record­ing 2.14 per­cent in­crease. The Con­sumer Goods sec­tor came in third as its in­dex achieved 1.05 per­cent growth, end­ing the week at 1,114.75 points.

On the other hand, the Fi­nan­cial Ser­vices sec­tor headed the losers list as its in­dex de­clined by 3.58 per­cent to end the week’s ac­tiv­ity at 627.54 points. The Banks sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 2.47 per­cent, clos­ing at 928.07 points, fol­lowed by the Oil & Gas sec­tor, as its in­dex closed at 776.64 points at a loss of 0.56 per­cent.

Sec­tors’ ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 259.57 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 39.15 per­cent of the to­tal mar­ket trad­ing vol­ume. The Real Es­tate sec­tor was sec­ond in terms of trad­ing vol­ume as the sec­tor’s traded shares were 26.45 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 175.37 mil­lion shares.

On the other hand, the Banks sec­tor’s stocks were the high­est traded in terms of value; with a turnover of around KD 18.25 mil­lion or 26.50 per­cent of last week’s to­tal mar­ket trad­ing value. The Telecom­mu­ni­ca­tions sec­tor took the sec­ond place as the sec­tor’s last week turnover was ap­prox. KD 13.05 mil­lion rep­re­sent­ing 18.95 per­cent of the to­tal mar­ket trad­ing value. — Pre­pared by the Stud­ies & Re­search Depart­ment, Bayan In­vest­ment Co.

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