Boursa indices rise on fresh momentum
KUWAIT: Boursa Kuwait ended last week in the green zone. The Price Index closed at 5,511.74 points, up by 0.57 percent from the week before closing, the Weighted Index increased by 1.89 percent after closing at 369.98 points, whereas the KSX15 Index closed at 871.57 points up by 1.96 percent. Furthermore, the week’s average daily turnover decreased by 19.74 percent, compared to the preceding week, reaching K.D 16.14 million, whereas trading volume average was 143.79 million shares, recording a decrease of 18.91 percent.
The three Boursa indices were able to realize gains for the second consecutive week supported by the active trading that included many listed stocks and concentrated on the leading ones, in addition to the speculative operations that concentrated on some small-cap stocks especially the ones being traded under its book and par values. The Boursa witnessed such performance despite the decrease in the trading levels compared to the week earlier, as the total volume of the traded stocks during the last week reached 718.9 million stock, while the total value reached by the end of the week to around KD 81.7 million.
As per the daily trading activity, the Boursa witnessed a fluctuated performance all along the beginning of week session, where it was able to increase in the first session supported by the active trading and the random purchasing operations executed on the leading stocks, while the profit collection operations contributed to the decline in the indices’ performance putting it in the red zone, before it witnessed the last minutes of the session some random purchasing operations that contributed into adjusting the Boursa’s track and redirect its indices to the green zone. The Boursa witnessed in the next couple of sessions a mixed closings for the three indices, where the Price Index dropped affected by the profit collection operations that included few small-cap stocks, especially the ones that did not disclose its third quarter financial results before the session, while the Weighted and KSX-15 indices ended the session in the green zone, supported by the continued purchasing operations on the leading and heavy stocks.
The three Boursa indices returned in the midweek session to meet in the green closing area, supported by the active purchasing operations that concentrated on the Banks sector, in addition to the quick speculative operations executed on the smallcap stocks amid a growing trading activity especially in the value which witnessed an increase on 72 percent by the end of the session. The market returned to fluctuate once again on Wednesday’s session, where the Price Index was able to realize gains in light of the quick speculative operations and the random purchasing operations executed on the small-cap stocks, especially on the ones that disclosed positive third quarter results for the year 2016, while the profit collection operations that included some leading stocks, pushed the Weighted and KSX-15 indices to end the session in the red zone. The last session of the last week ended with mixed closings to the three indices, where the Price and Weighted indices were able to realize limited increase that enhanced its weekly gains, however the KSX-15 Index continued recording losses for the second consecutive session affected by the profit collection operations executed on the heavy stocks, which limited its weekly gains to a certain degree.
By the end of the week, the market capitalization for the listed companies in the official market reached KD 24.82 billion, up by 0.71 percent compared to its level in the previous week, where it reached then KD 24.64 billion. On an annual level, the decline in the market cap for the listed companies in the primary market contracted to reach 1.77 percent of its value at end of 2015, where it reached then KD 25.27 billion.
As far as Boursa Kuwait annual performance, the price index ended last week recording 1.84 percent annual loss compared to its closing in 2015, while the weighted index decreased by 3.07 percent, and the KSX-15 recorded 3.21 percent loss.
Eight of KSE’s sectors ended last week in the green zone, while the other four recorded declines. Last week’s highest gainer was the Healthcare sector, achieving 4.87 percent growth rate as its index closed at 1,167.52 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 780.75 points recording 4.21 percent increase. The Telecommunications companies sector came in third as its index achieved 3.06 percent growth, ending the week at 617.10 points. The Consumer Goods sector was the least growing as its index closed at 1,124.42 points with a 0.19 percent increase.
On the other hand, the Basic Materials sector headed the losers list as its index declined by 1.15 percent to end the week’s activity at 918.93 points. The Consumer Services sector was second on the losers’ list, which index declined by 0.48 percent, closing at 914.61 points, followed by the Technology sector, as its index closed at 990.91 points at a weekly loss of 0.14 percent.
The Financial Services sector dominated a total trade volume of around 250.31 million shares changing hands during last week, representing 34.82 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 22.28 percent of last week’s total trading volume, with a total of around 160.15 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 32.99 million or 40.88 per- cent 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 15.15 million representing 19.22 percent of the total market trading value.—Prepared by the Studies & Research Department Bayan Investment Co.