Boursa ends June in the red zone

BOURSA KUWAIT MONTHLY RE­PORT

Kuwait Times - - BUSINESS -

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.

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