Boursa ends June in the red zone
BOURSA KUWAIT MONTHLY REPORT
Boursa Kuwait ended June in the red zone. The Price Index closed at 6,762.82 points, down by 0.33% compared to the closings of the month before, the Weighted Index decreased by 1.27% after closing at 399.33 points, whereas the KSX-15 Index closed at 910.10 points decreasing by 0.62%. Furthermore, last month’s average turnover decreased by 35.91%, compared to the preceding month, reaching K.D 8.38 million, whereas trading volume average was 40.81 million shares, recording a decrease of 65.65%.
Boursa Kuwait ended last month’s trading with various losses to its three indices, compared to May closings, amid the selling trend that the market witnessed during most of the daily sessions of the week, which included many listed stocks and headed by the leading and heavy stocks, which had a clear impact on the Weighted and KSX-15 indices in particular, the most declining indices by the end of the month.
The Boursa recorded its losses in parallel with the noticeable decrease in the trading activity, as the total cash liquidity during the month declined to reach KD 150.80 million only, while the volume dropped to reach 734.50 million stock. The market witnessed such performance in light of the traders’ refrain from trading during this period, due to the absence of any positive motivator that can return the lost confidence in the market, which negatively affected the daily trading indicators, that in turn declined compared to May’s trading.
Moreover, the selling operations witnessed by the market during the last month included many listed stocks of different sectors, especially in the Health Care and Consumer Services sectors, the most declining sectors during the month of June. On the contrary, the purchasing operations were not absent from influencing the trading behavior in the Boursa during the month, as it was present in few sessions and were able to push the indices to realize some daily gains, however it were not enough to push the market indices to close in the green zone on the monthly level.
In addition, the Boursa lost around KD 317 million last month, as the market capitalization reached KD 26.53 billion by the end of June, down by 1.18% compared to its level in May, where it was KD 26.85 billion. On an annual level, the market cap for the listed companies in the market recorded a growth of 4.43% compared to its value at end of 2016, where it reached KD 25.41 billion.
On the other hand, the first half period of the current year had ended by the end of June, as the Boursa ended this period with limited gains to its three indices, whereas the Price Index recorded an increase of 3.49% since the beginning of the current year, and the Weighted Index recorded a growth of 3.53%, while the increase in the KSX-15 Index since the beginning of the year reached 3.49%. As by the end of the last month, the Boursa will enter a new phase of watch state waiting for the listed companies results to be disclosed for the first half of the current year, which will define to a great extent the investors’ plans in the Boursa for the coming period, where it is expected to be announced during the few coming weeks. For the annual performance, the Price Index ended last month recording 17.65% annual gain compared to its closing in 2016, while the Weighted Index increased by 5.06%, and the KSX-15 recorded 2.83% growth.
Eight of Boursa Kuwait sectors ended last month in the red zone, while the other four recorded increases. The Oil & Gas sector headed the losers list as its index declined by 8.07% to end the month’s activity at 968.80 points. The Consumer Goods sector was second on the losers’ list, which index declined by 5.60%, closing at 1,084.21 points, followed by the Financial Services sector, as its index closed at 675.99 points at a loss of 3.56%. The Telecommunications sector was the least declining as its index closed at 603.50 points with a 0.18% decrease. On the other hand, last month’s highest gainer was the Health Care sector, achieving 15.31% growth rate as its index closed at 1,605.16 points. Whereas, in the second place, the Consumer Services sector’s index closed at 1,055.63 points recording 10.26% increase. The Insuranse sector was the least growing as its index closed at 1,071.21 points with a 0.36% increase.
The Financial Services sector dominated a total trade volume during the last month of 243.92 million shares changing hands, representing 33.21% of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 24.62% of last month’s total trading volume, with a total of 180.87 million shares. On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of KD 61.30 million or 40.65% of last month’s total market trading value. The Industrial sector took the second place as the sector’s last month turnover of KD 34.38 million representing 22.80% of the total market trading value.