Boursa Kuwait rallies on positive momentum

Boursa Kuwait ended last week in the green zone. The Price Index closed at 7,029.80 points, up by 0.01 percent from the week before closing, the Weighted Index increased by 1.66 percent after closing at 420.15 points, whereas the KSX-15 Index closed at 958.02 points up by 2.59 percent. Furthermore, the week’s average daily turnover increased by 11.66 percent, compared to the preceding week, reaching KD 30.33 million, whereas trading volume average was 358.82 million shares, recording an increase of 37.98 percent.

Boursa Kuwait three indices were able to realize different gains by the end of last week, as a result to the random purchasing operations that included many stocks of different sectors, especially the leading and heavy stocks of Banks and Financial Services sectors, which positively affected the indices’ performance and pushed it to close in the green zone. The market gains of last week came in light of a noticeable increase in the trading activity compared to the earlier week, especially the volume, which increased by 37.98 percent.

The market initiated its first sessions of the week with mixed closings to the three indices, whereas the Price Index recorded limited loss in light of the selling and quick speculative operations executed on some small-cap stocks, while the random purchasing operations executed on a limited number of leading and heavy stocks, assisted the Weighted and KSX-15 indices in realizing slight increase by the end of the session, amid a decreased rate of the executed deals by 10.42 percent. On the second session of the week, the market recorded a group loss for the three indices, due to the continued random selling activity of some listed stocks especially the low-priced ones, where the Price Index dropped to break the 7,000 point level down, however the purchasing activity witnessed by some leading stocks, contributed in limiting the market loss to a certain extent, in light of relatively quiet trading activity.

On the mid-week session, the Boursa Kuwait indices were able to redirect its performance and record some gains, supported by the active and strong speculative operations executed on many listed stocks of different sectors, while the random purchasing operations executed on a limited number of leading stocks, assisted the Weighted and KSX15 indices to record some increase by the end of the session. On Wednesday’s session, the market was able to hold and record good growth by the end of the session, where its three indices met in the green zone, in light of the active purchasing operations that concentrated on the leading and heavy stocks, in addition to the active purchasing operations executed on the low-priced stocks being traded below its par value, amid a noticeable increase in the trading activity, where the cash liquidity grew by 44.50 percent, and the volume increased by 42.55 percent, compared to the previous session.

However, the market failed in continuing its upward direction on the last session of the week, where the heavy selling pressures witnessed by a number of stocks of most market sectors, especially in the Industrial and Consumer Goods, caused the three indices to decline and lose all its gains realized in the earlier sessions of the week, to close in the red zone, despite the relatively active trading during the session, especially the traded volume, which increased by 18.89 percent.

The market capitalization reached by the end of last week KD 27.57 billion, up by 1.66 percent compared to its level in a week earlier, where it was KD 27.12 billion. On an annual level, the market cap for the listed companies in the main market increased by 8.50 percent from its value at end of 2016, where it reached then KD 25.41 billion.

For the annual performance, the Price Index ended last week recording 22.30 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 10.54 percent, and the KSX-15 recorded 8.25 percent growth.

Seven of Boursa Kuwait’s sectors ended last week in the green zone, while the other five recorded decreases. Last week’s highest gainer was the Banks sector, achieving 3.89 percent growth rate as its index closed at 974.78 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 975.25 points recording 3.31 percent increase. The Basic Materials sector came in third as its index achieved 2.05 percent growth, ending the week at 1,346.92 points.

On the other hand, the Industrial sector headed the losers list as its index declined by 4.10 percent to end the week’s activity at 1,711.05 points. The Telecommunications sector was second on the losers’ list, which index declined by 1.36 percent, closing at 659.44 points, followed by the Insurance sector, as its index closed at 1,078.49 points at a loss of 1.02 percent. The Consumer Goods sector was the least declining as its index closed at 1,144.58 points with a 0.55 percent decrease.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 718.06 million shares changing hands during last week, representing 40.02 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 31.99 percent of last week’s total trading volume, with a total of around 573.97 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 48.69 million or 32.11 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 46.54 million representing 30.69 percent of the total market trading value.

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