Boursa Kuwait equities remain buoyant

Boursa Kuwait ended last week in the green zone. The Price Index closed at 5,589.16 points, up by 0.36 percent from the week before closing, the Weighted Index increased by 1 percent after closing at 373.31 points, whereas the KSX-15 Index closed at 872.82 points up by 1.21 percent. Furthermore, the week’s average daily turnover increased by 32.58 percent, compared to the preceding week, reaching KD 16.23 million, whereas trading volume average was 165.96 million shares, recording an increase of 61.89 percent.

The Boursa’s three main indices were able to realize weekly gains once again after it witnessed fluctuation in its performance during the earlier week, affected by the purchasing activity on the heavy and leading stocks, especially the ones expected to distribute cash dividends and stocks for the financial year 2016. Despite the negative start that the Boursa initiated its last week’s trading with, where the indices recorded different losses in the first session of the week as a result to the profit collection operations; it was able to compensate its losses gradually supported by the return of the purchasing operations to be in control over the trading activity once again, to end the week in the green zone.

As per the daily performance, the Kuwait Boursa’s indices initiated its first session of the week with different losses recorded to its three indices affected by the selling pressures and the profit collection operations that included some stocks of previous increases; such performance came in light of a decline in the trading activity compared to the previous session, where the liquidity level dropped at the end of the session by 28.5 percent, while the volume decreased by 36.51 percent.

Monday’s session witnessed a mixed closing to the three indices, where the Price Index continued its decline due to the profit collection operations and the quick speculations executed on some small-cap stocks, while the Weighted and KSX-15 indices were able to increase by the end of the session supported by the random trading and the purchasing operations that included some leading stocks; the Boursa witnessed such performance in light of an increased trading activity compared to Sunday’s session, where the cash liquidity recorded by the end of the session an increase of 13.16 percent, while the volume increased by 37.85 percent.

On Tuesday’s session, the three market indices were able to increase and end the session in the green zone, supported by the continued purchasing activity on the leading and operational stocks, in addition to the speculative operations executed on some small-cap stocks; such performance came as a result to the continued growth in the trading activity, where the value increased by 31.32 percent, and the volume grew by 19.48 percent. On the end of week session, the Boursa indices returned to fluctuate once again, where the Price and Weighted indices were able to realize gain by the end of the session, however the KSX-15 went against the current and ended the last session of the week in the red zone; and such performance came in light of a growth in the trading levels, as the value reached its highest level since last October being at KD 23.03 million, up by 33.80 percent, and the volume recorded a growth of 18.35 percent to reach 216.58 million stock.

By the end of the week, the market capitalization for the listed companies in the primary market reached KD 25.63 billion, up by 2.28 percent compared to its level in a week earlier, where it reached then KD 25.06 billion. On an annual level, the market cap for the listed companies in the primary market recorded a growth of 1.44 percent from 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 0.46 percent annual loss compared to its closing in 2015, while the weighted index decreased by 2.20 percent, and the KSX-15 recorded 3.07 percent loss.

Sectors’ Indices

Five of KSE’s sectors ended last week in the green zone, six recorded declines, whereas the Health Care sector’s index closed with no change from the week before. Last week’s highest gainer was the Real Estate sector, achieving 2.19 percent growth rate as its index closed at 852.06 points. Whereas, in the second place, the Consumer Goods sector’s index closed at 1,133.91 points recording 1.73 percent increase. The Basic Materials sector came in third as its index achieved 1.56 percent growth, ending the week at 974.11 points.

On the other hand, the Technology sector headed the losers list as its index declined by 11.67 percent to end the week’s activity at 617.46 points. The Consumer Services sector was second on the losers’ list, which index declined by 1.07 percent, closing at 910.62 points, followed by the Insurance sector, as its index closed at 950.47 points at a loss of 0.60 percent.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 260.52 million shares changing hands during last week, representing 39.25 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 38.47 percent of last week’s total trading volume, with a total of around 255.40 million shares.

On the other hand, the Financial Services sector’s stocks were the highest traded in terms of value; with a turnover of around KD 18.63 million or 28.69 percent of last week’s total market trading value. The Banks sector took the second place as the sector’s last week turnover was approx. KD 13.33 million representing 20.52 percent of the total market trading value. — Prepared by the Studies & Research Department, Bayan Investment Co.