Kuwait stocks come un­der pres­sure

BAYAN WEEKLY MAR­KET RE­PORT

Kuwait Times - - BUSINESS -

Boursa Kuwait ended last week with mixed per­for­mance. The Price In­dex closed at 5,321.46 points, down by 0.12 per­cent from the week be­fore clos­ing, the Weighted In­dex de­creased by 0.15 per­cent af­ter clos­ing at 346.11 points, whereas the KSX-15 In­dex closed at 805.00 points up by 0.15 per­cent. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 126.92 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 12.23 mil­lion, whereas trad­ing vol­ume av­er­age was 78.85 mil­lion shares, record­ing an in­crease of 115.13 per­cent.

The Bourse per­for­mance was weak in general dur­ing the last week, whereas the three in­dices recorded no­tice­able losses in the three first ses­sions of the week as a re­sult to the sell­ing trend that in­cluded many traded stocks of large-cap and small-cap, be­fore it could re­al­ize in­crease in the last two ses­sions, which en­abled it to com­pen­sate a large part of such losses, es­pe­cially the KSX-15 In­dex which was able to com­pen­sate its loss to­tally and end the week in the green zone.

The Bourse wit­nessed such per­for­mance in light of a no­tice­able in­crease in the trad­ing lev­els where it reached good po­si­tions com­pared to the pre­vi­ous weeks, as the to­tal traded vol­ume dur­ing the last week reached 115.13 per­cent com­pared to the pre­vi­ous week to reach 394.25 mil­lion share, while the to­tal trad­ing value grew by the end of the week to reach KD 61.15 mil­lion, against KD 26.95 mil­lion in the ear­lier week, and up by 126.92 per­cent. Such per­for­mance came in light of con­cen­trat­ing the pumped liq­uid­ity to the mar­ket on the lead­ing stocks, es­pe­cially in the Banks sec­tor, which ac­quired over 52 per­cent of the Bourse’s liq­uid­ity over the last week.

As per the daily trad­ing ac­tiv­ity, the Boursa Kuwait started its first ses­sion of the last week with a drop in all its in­dices af­fected by the sell­ing pres­sures and the profit col­lec­tion op­er­a­tions that in­cluded a wide range of stocks, es­pe­cially the small-cap stocks that are ex­pected to dis­close neg­a­tive re­sults for the third quar­ter of the cur­rent year; while the Bourse con­tin­ued its neg­a­tive per­for­mance in the sec­ond ses­sion and its three in­dices closed in the red zone, amid con­tin­ued sell­ing pres­sures that con­cen­trated on the lead­ing stocks, which pushed the trad­ing value to record a large in­crease by 174 per­cent. On the mid-week ses­sion, the Kuwait Bourse con­tin­ued record­ing con­sec­u­tive losses for the three in­dices amid con­tin­ued sell­ing pres­sures in con­trol­ling the trad­ing di­rec­tion and its con­cen­tra­tion on the Banks sec­tor’s stock in par­tic­u­lar.

On Wed­nes­day’s ses­sion, the Bourse was able to re­al­ize in­crease for its three in­dices for the first time in the week, sup­ported by the re­turn of the pur­chas­ing op­er­a­tions, amid con­cen­tra­tion on the lead­ing stocks es­pe­cially in the Banks sec­tor. Also, the Kuwait Bourse con­tin­ued its pos­i­tive per­for­mance at the end of week ses­sion in light of a no­tice­able pur­chas­ing ac­tiv­ity on the lead­ing stocks, which was pos­i­tively re­flected on the three in­dices, es­pe­cially KSK-15 which was able to com­pen­sate all its losses recorded in the early ses­sions of the week, to end it in the green zone. Such per­for­mance came in light of a big growth in the pumped liq­uid­ity to reach KD 22.08 mil­lion, the high­est level since last March.

By the end of the last week, the mar­ket cap­i­tal­iza­tion for the listed com­pa­nies in of­fi­cial mar­ket reached KD23.24 bil­lion, down by 0.18 per­cent com­pared to its level in the week ear­lier, where it reached then KD 23.29 bil­lion. On an an­nual level, the de­cline in mar­ket cap for the listed com­pa­nies in the of­fi­cial mar­ket in­creased to reach 8 per­cent from its value at end of 2015, where it reached then KD 25.27 bil­lion.

As far as Boursa Kuwait’s an­nual per­for­mance, the price in­dex ended last week record­ing 5.23 per­cent an­nual loss com­pared to its clos­ing in 2015, while the weighted in­dex de­creased by 9.32 per­cent, and the KSX-15 recorded 10.60 per­cent loss.

Sec­tors’ In­dices

Seven of Boursa Kuwait’s sec­tors ended last week in the red zone, while the other five recorded in­creases. The Telecom­mu­ni­ca­tions sec­tor headed the losers list as its in­dex de­clined by 1.50 per­cent to end the week’s ac­tiv­ity at 558.65 points. The Real Es­tate sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 1.38 per­cent, clos­ing at 794.25 points, fol­lowed by the Fi­nan­cial Ser­vices sec­tor, as its in­dex closed at 537.38 points at a loss of 0.87 per­cent. The Health Care sec­tor was the least de­clin­ing as its in­dex closed at 1,046.80 points with a 0.40 per­cent de­crease.

On the other hand, last week’s high­est gainer was the Tech­nol­ogy sec­tor, achiev­ing 1.80 per­cent growth rate as its in­dex closed at 991.79 points. Whereas, in the sec­ond place, the In­dus­trial sec­tor’s in­dex closed at 1,181.28 points record­ing 1.30 per­cent in­crease. The In­surance sec­tor came in third as its in­dex achieved 1.15 per­cent growth, end­ing the week at 946.68 points. The Con­sumer Ser­vices sec­tor was the least grow­ing as its in­dex closed at 911.82 points with a 0.30 per­cent in­crease.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 123.33 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 31.28 per­cent of the to­tal mar­ket trad­ing vol­ume. The Banks sec­tor was sec­ond in terms of trad­ing vol­ume as the sec­tor’s traded shares were 21.90 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 86.36 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 32.04 mil­lion or 52.40 per­cent 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. KD 8.38 mil­lion rep­re­sent­ing 13.71 per­cent of the to­tal mar­ket trad­ing value. — Pre­pared by the Stud­ies & Re­search De­part­ment, Bayan In­vest­ment Co.

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