Boursa Kuwait stocks close week mixed BAYAN WEEKLY MARKET REPORT

Boursa Kuwait ended last week mixed. The Price Index closed at 5,517.38 points, up by 0.10 percent from the week before closing, the Weighted Index decreased by 0.38 percent after closing at 368.56 points, whereas the KSX-15 Index closed at 863.55 points up by 0.92 percent. Furthermore, the week’s average daily turnover decreased by 10.28 percent, compared to the preceding week, reaching KD 14.48 million, whereas trading volume average was 128.92 million shares, recording a decrease of 10.34 percent.

The Boursa ended the week’s trading with mixed closings to the three indices, whereas the Price Index was able to record limited gains and close in the green zone for the fifth consecutive week, in light of the speculative operations executed on the small-cap stocks especially the ones being traded below its book or par value; on the contrary, the Weighted and KSX-15 indices ended the week in the red zone, affected by the profit collection operations witnessed by the leading and operational stocks which witnessed good increases during the previous weeks’ trading.

As per the daily activity, the Kuwait Boursa’s indices initiated the first session of the week with mixed closings, whereas the Price and Weighted indices dropped as a result to the selling for profit operations executed on the small-cap stocks, while the KSX15 Index was able to realize increase supported by the purchasing powers that concentrated on some heavy stocks. Also, the Boursa indices continued its fluctuation for the second consecutive session, as the Price and Weighted indices ended Monday’s session in the green zone supported by the random purchasing operations and the quick speculation that included few small-cap and mid-cap stocks, while the KSX-15 Index declined due to the profit collection operations executed on the leading stocks after the increases it witnessed in the previous sessions.

On the mid-week session, the Boursa continued its mixed performance that it was witnessing throughout the week, where the Price Index witnessed a limited decrease affected by the selling pressures that included some small-cap stocks, however the Weighted and KSX-15 indices were able to realize increases supported by the return of the purchasing and collection operations executed on the leading stocks.

The Wednesday’s session witnessed a continued fluctuation in the indices’ performance for the fourth consecutive session, where the Price Index grew as a result to the speculative operations that included a wide range of small-cap stocks, especially the ones valued less than 100 fils, where the Weighted and KSX-15 indices were subject to the profit collection operations that concentrated on some leading stocks. On the end of week session, the three main indices of the Boursa witnessed decline affected by the selling pressures that included many listed stocks of both leading and small-cap, amid a noticeable increase in the trading value to reach around KD 15.8 million by the end of the session.

By the end of last week, the market capitalization for the listed companies in the primary market reached KD 24.81 billion, down by 0.03 percent compared to its level in a week earlier, where it was then KD 24.82 billion, however on an annual level, the decline in the market cap for the listed companies in the primary market contracted to reach 1.80 percent of its value as at end of 2015, where it was then KD 25.27 billion.

As far as Boursa Kuwait annual performance, the price index ended last week recording 1.74 percent annual loss compared to its closing in 2015, while the weighted index decreased by 3.44 percent, and the KSX-15 recorded 4.10 percent loss.

Four of Boursa Kuwait’s sectors ended last week in the green zone, while the other eight recorded declines. Last week’s highest gainer was the Health Care sector, achieving 5.54 percent growth rate as its index closed at 1,232.21 points. Whereas, in the second place, the Industrial sector’s index closed at 1,240.39 points recording 2.34 percent increase. The Financial Services sector came in third as its index achieved 0.66 percent growth, ending the week at 568.98 points.

On the other hand, the Technology sector headed the losers list as its index declined by 17.81 percent to end the week’s activity at 841.40 points. The Consumer Goods sector was second on the losers’ list, which index declined by 0.81 percent, closing at 1,115.31 points, followed by the Banks sector, as its index closed at 829.97 points at a weekly loss of 0.73 percent.

The Financial Services sector dominated a total trade volume of around 263.28 million shares changing hands during last week, representing 40.84 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 20.19 percent of last week’s total trading volume, with a total of around 130.17 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 25.44million or 35.14 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 16.48 million representing 22.76 percent of the total market trading value. - Prepared by the Studies & Research Department, Bayan Investment Co.