Boursa Kuwait pares losses, edges up

Boursa Kuwait ended last week in the green zone. The Price Index closed at 5,480.42 points, up by 1.31 percent from the week before closing, the Weighted Index increased by 2.14 percent after closing at 363.13 points, whereas the KSX-15 Index closed at 854.82 points up by 2.87 percent. Furthermore, the week’s average daily turnover increased by 87.19 percent, compared to the preceding week, reaching KD 20.11 million, whereas trading volume average was 177.32 million shares, recording an increase of 79.16 percent.

The Boursa’s three indices were able to meet in the green zone after the fluctuated performance witnessed in a week earlier, which came in light of the purchasing trend that included a wide range of listed stocks, especially the leading and operational ones which disclosed positive results for the third quarter of the current year, in addition to the random purchasing operations executed on some small-cap stocks of market value below its par and book value. Such performance came in light of the continued watch by the dealers for the listed companies disclosures for the nine months financial results of the current year before the end of the assigned legal disclosure period, which will end mid of the current month.

As per the daily activity, the Boursa was able to realize increase in the beginning of the week session supported by the leading stocks activity especially in the Banks sector, after such stocks were subject to some selling pressures in the previous sessions, the Boursa witnessed such performance in light of the noticeable growth in the trading activity compared to the previous session, especially the value, which recorded by the end of the session an increase of 123 percent to reach KD 18 million. The Boursa continued on the second session realizing gains for the three indices, supported by the speculative dealing that included few idle stocks that are being traded below its par and book value, in addition to the continued purchasing operations on the leading stocks, especially in the Telecommunication sector.

On Tuesday’s session, the Boursa continued in enhancing its three indices’ gains, amid continued random trading on the leading and operational stocks and in light of the continued growth in the liquidity levels which reached by the end of the session KD 22.2 million, its highest level during the week.

On Wednesday’s sessions, the Boursa train stopped at the profit collection station, where the three indices declined affected by the selling operations that included many traded stocks, which negatively affected the three indices that ended the session in the red zone for the first time this week, recording limited group losses, before it could compensate such losses at the end of week session and return to the green zone once again, supported by the purchasing operations that concentrated on the leading and heavy stocks.

By the end of the week, the market cap for the listed companies in the official market was able to cross the KD 24 billion level up, after reaching KD 24.64 billion, growing by 3.29 percent compared to its level in a week earlier, where it reached then KD 23.86 billion. On an annual level, the decline in the market cap for the listed companies in the official market dropped to reach 2.46 percent from its value at end of 2015, where it reached then KD 25.27.

As far as Boursa Kuwait annual performance, the price index ended last week recording 2.40 percent annual loss compared to its closing in 2015, while the weighted index decreased by 4.87 percent, and the KSX-15 recorded 5.07 percent loss.

Nine of KSE’s sectors ended last week in the green zone, while the other three recorded declines. Last week’s highest gainer was the Health Care sector, achieving 3.99 percent growth rate as its index closed at 1,113.31 points. Whereas, in the second place, the Telecommunications sector’s index closed at 598.78 points recording 3.18 percent increase. The Financial Services companies sector came in third as its index achieved 2.27 percent growth, ending the week at 562.15 points. The Insurance sector was the least growing as its index closed at 946.45 points with a 0.19 percent increase.

On the other hand, the Consumer Goods sector headed the losers list as its index declined by 0.89 percent to end the week’s activity at 1,122.31 points. The Consumer Services sector was second on the losers’ list, which index declined by 0.37 percent, closing at 919.01 points, followed by the Technology sector, as its index closed at 992.32 points at a weekly loss of 0.28 percent.

The Financial Services sector dominated a total trade volume of around 275.69 million shares changing hands during last week, representing 31.10 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 25.84 percent of last week’s total trading volume, with a total of around 229.09 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 40.50 million or 40.27 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 15.70 million representing 15.61 percent of the total market trading value.

— Prepared by the Studies & Research Department, Bayan Investment Co.