Boursa Kuwait shares rally on buying interest

BAYAN WEEKLY MARKET REPORT

KUWAIT: Boursa Kuwait ended last week with in the green zone. The Price Index closed at 6,725.78 points, up by 0.83 percent from the week before closing, the Weighted Index increased by 0.73 percent after closing at 403.64 points, whereas the KSX-15 Index closed at 919.44 points up by 0.92 percent. Furthermore, last week’s average daily turnover increased by 12.47 percent, compared to the preceding week, reaching KD 17.18 million, whereas trading volume average was 191.23 million shares, recording an increase of 26.69 percent.

The Boursa ended the week’s trading recording growth to its three indices after many weeks of fluctuation and negative performance, as it was able to return to the green zone supported by the return of the purchasing operations to be in the front, after most of the listed companies finished from disclosing its fiscal financial data for the first quarter of the current year, whereas the purchasing operations concentrated on the companies’ stocks that disclosed positive fiscal results. On the contrary, last weeks’ trading was subject to the selling and profit collection operations, as some traders executed such operations during some daily sessions of the week, causing the market indices to fall in the red zone, however, the market was able to resist such operations and end the week’s trading in the green zone.

Also, the Boursa Kuwait recorded during the last week market gains over KD 145 million, as the market capitalization for the total listed stocks in the official market reached KD 26.74 million, up by 0.55 percent from its value at a week earlier, where it was KD 26.59 billion. On an annual level, the market cap gains increased to 5.24 percent compared to its value at end of last year, where it was KD 25.41 billion. (Note: CMA decision no. (69) for year 2017 to move (11 company) from the primary market to the secondary market during the last week, contributed in decreasing the Boursa capitalization value by around KD 82.06, the total value of the 11 company market cap.)

Furthermore, the Boursa Kuwait witnessed in the first session of the last week a mixed closing for its three indices, whereas the Price and Weighted indices declined affected by the selling pressures on a wide range of listed companies’ stocks, especially the small-cap and idle stocks which have been traded below its par or book value; while the KSX-15 went against the current and was able to end the session with good increase supported by the strong purchasing operations that concentrated on the leading stocks, especially in the Oil and Gas sector, the most increasing sector by the end of the session. In addition, the market was able in the second session to record increases to its three indices in light of the heavy purchasing operations on the small-cap and mid-cap stocks, especially the ones that disclosed good fiscal results. Such performance came in parallel with a noticeable growth in the trading activity as the cash liquidity recorded an increase by 55 percent compared to the previous session, while the number of traded stocks recorded growth of 60 percent by the end of the session.

On the mid-week session, the three market indices returned to fluctuate once again, whereas the Price Index was able to continue its upward direction that it started in the previous session, through the support received by the continued purchasing operations on some small-cap stocks, while the Weighted and KSX15 indices declined as a result to the profit collection operations executed on some leading stocks, especially the ones that recorded different increases in the previous sessions.

The three market indices returned on Wednesday’s session to meet in the green zone once again, supported by the random purchasing operations executed on some leading stocks especially in the Banks sector, in addition to the speculative operations witnessed by the smallcap and idle stocks, being traded below 100 fils. Such performance took place before the end of week session, where the three market indices closed with limited losses affected by the selling and profit collection operations concentrated on a number of leading stocks, amid a declined trading activity of both the value and volume, as the cash liquidity dropped by around 29 percent and the volume decreased by around 39 percent, compared to Wednesday’s session.

For the annual performance, the Price Index ended last week recording 17.01 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 6.20 percent, and the KSX-15 recorded 3.89 percent growth.

Sectors’ Indices

Six of Boursa Kuwait’s sectors ended last week in the green zone, while the other six recorded decreases. Last week’s highest gainer was the Real Estate sector, achieving 2.52 percent growth rate as its index closed at 972.48 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 1,075.06 points recording 2.36 percent increase. The Basic Materials sector came in third as its index achieved 2.25 percent growth, ending the week at 1,301.77 points.

On the other hand, The Technology sector headed the losers list as its index declined 3.85 percent to end the week’s activity at 672.15 points. The Health Care sector was second on the losers’ list, which index declined by 3.02 percent, closing 1,390.00 points, followed by the Insurance sector, as its index closed at 1,042.40 points at a loss of 2.42 percent.

Sectors’ Activity

The Real Estate sector dominated a total trade volume of around 363.86 million shares changing hands during last week, representing 38.06 percent of the total market trading volume. The Financial Services sector was second in terms of trading volume as the sector’s traded shares were 36.78 percent of last week’s total trading volume, with a total of around 351.62 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 26.23 million or 30.54 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 approximately KD 21.39 million representing 24.90 percent of the total market trading value. — Prepared by: Studies & Research Department, Bayan Investment Co.