Mar­ket record­ing losses as is­sues heat up

Kuwait Times - - BUSINESS -

Boursa Kuwait ended last week in the red zone. The Price In­dex closed at 6,680.13 points, down by 1.22% from the week be­fore clos­ing, the Weighted In­dex de­creased by 0.53% af­ter clos­ing at 397.21 points, whereas the KSX-15 In­dex closed at 907.32 points de­clin­ing by 0.31%. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 32.29%, com­pared to the pre­ced­ing week, reach­ing K.D 9.28 mil­lion, whereas trad­ing vol­ume av­er­age was 48.51 mil­lion shares, record­ing an in­crease of 34.56%.

The mar­ket con­tin­ued record­ing losses as the po­lit­i­cal is­sues are get­ting hot­ter in the area dur­ing this pe­riod, which neg­a­tively af­fected on the fluc­tu­a­tion of the re­gion’s mar­kets, in­clud­ing Boursa Kuwait, to end the last week’s trad­ing in the red zone. Also, the mar­ket was sub­ject to pres­sures aris­ing from the sell­ing op­er­a­tions on many listed stocks of dif­fer­ent sec­tors, es­pe­cially the idle and small-cap stocks that been traded be­low its par and book val­ues, which no­tice­ably af­fected the Price In­dex in par­tic­u­lar, the most los­ing in­dex com­pared to its peers, the Weighted and KSX-15.

Boursa Kuwait recorded more than K.D. 245 mil­lion in losses of its mar­ket value in the last five ses­sions, whereas the mar­ket cap reached by the end of last week K.D. 26.24 bil­lion, down by 0.93% com­pared to its level in a week ear­lier, where it was K.D. 26.48 bil­lion. On an an­nual level, the mar­ket cap gains for the listed com­pa­nies in the mar­ket con­tracted to reach 3.26% com­pared to its value at end of 2016, where it reached then K.D. 25.41 bil­lion.

Dur­ing this pe­riod, the mar­ket is wit­ness­ing a state of watch and cau­tion wait­ing for the listed com­pa­nies to dis­close its first half fi­nan­cial re­sults of the cur­rent year, ended by the end of the month of June, which could push some in­vestors to re­frain from trad­ing in the mar­ket tem­po­rar­ily wait­ing for an­nounc­ing such re­sults to de­fine their in­vest­ment pri­or­i­ties for the com­ing pe­riod, where it is ex­pected to be dis­closed in the few com­ing weeks.

As per the daily trad­ing ac­tiv­ity, the mar­ket wit­nessed in the first ses­sion of the week a mixed per­for­mance for the three in­dices, whereas the Price In­dex wit­nessed a neg­a­tive per­for­mance that pushed it to record strong losses con­sid­ered the high­est in around two months, as it dropped by more than 150 point, or 2.22% of its value, and was ac­com­pa­nied by the Weighted In­dex in the red zone, which de­clined by 0.42%, as a re­sult to the large de­crease wit­nessed by many small-cap stocks, es­pe­cially the ones con­sid­ered idle and did not wit­ness ac­tive trad­ing dur­ing the last pe­riod, while the KSX-15 In­dex ended the ses­sion’s trad­ing with an in­crease by 0.55%, sup­ported by the ran­dom pur­chas­ing op­er­a­tions that con­cen­trated on some heavy and lead­ing stocks.

The second ses­sion of last week was ended with no­tice­able losses for the three in­dices due to the sell­ing pres­sures that many listed stocks were sub­ject to, headed by the lead­ing and heavy stocks that wit­nessed quick profit col­lec­tion op­er­a­tions, which pushed the three mar­ket in­dices to close in the red zone.

The mar­ket was able to record dif­fer­ent gains for its three in­dices in the mid-week ses­sion, as the three mar­ket in­dices were able to com­pen­sate a small por­tion of its losses recorded since the be­gin­ning of the week, sup­ported by the pur­chas­ing op­er­a­tions ex­e­cuted on many listed stocks of dif­fer­ent sec­tors, es­pe­cially in the Oil & Gas sec­tor, the most grow­ing sec­tor among the twelve sec­tors of the mar­ket. In ad­di­tion, on Wed­nes­day’s ses­sion, the mar­ket con­tin­ued its in­crease sup­ported by the con­tin­ued pur­chas­ing op­er­a­tions on many listed stocks, headed by the lead­ing ones, es­pe­cially in the Banks sec­tor. How­ever, the three Boursa in­dices re­turned in the last ses­sion of the week to fluc­tu­ate once again, whereas the Price In­dex re­al­ized some gain but did not ex­ceed more than 0.14% only, while the Weighted and KSX-15 in­dices re­turned to the red zone once again by record­ing dif­fer­ent losses, which added to its weekly losses. For the an­nual per­for­mance, the Price In­dex ended last week record­ing 16.21% an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 4.50%, and the KSX-15 recorded 2.52% growth.

Sec­tors’ In­dices

Nine of Boursa Kuwait’s sec­tors ended last week in the red zone, while the other three recorded in­creases. The Telecom­mu­ni­ca­tions sec­tor headed the losers list as its in­dex de­clined by 5.75% to end the week’s ac­tiv­ity at 568.78 points. The In­surance sec­tor was second on the losers’ list, which in­dex de­clined by 5.72%, clos­ing at 1,009.91 points, fol­lowed by the Con­sumer Ser­vices sec­tor, as its in­dex closed at 1,022.59 points at a loss of 3.13%. The In­dus­trial sec­tor was the least de­clin­ing as its in­dex closed at 1,890.11 points with a 0.61% de­crease.

On the other hand, last week’s high­est gainer was the Health Care sec­tor, achiev­ing 7.06% growth rate as its in­dex closed at 1,718.45 points. Whereas, in the second place, the Oil & Gas sec­tor’s in­dex closed at 1,011.55 points record­ing 4.41% in­crease. The Tech­nol­ogy sec­tor came in third as its in­dex achieved 0.14% growth, end­ing the week at 661.83 points.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 94.48 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 38.98% of the to­tal mar­ket trad­ing vol­ume. The Real Es­tate sec­tor was second in terms of trad­ing vol­ume as the sec­tor’s traded shares were 25.45% of last week’s to­tal trad­ing vol­ume, with a to­tal of around 61.68 mil­lion shares.

On the other hand, the Banks sec­tor’s stocks were the high­est traded in terms of value; with a turnover of around K.D 14.92 mil­lion or 32.16% 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. K.D 9.55 mil­lion rep­re­sent­ing 20.58% of the to­tal mar­ket trad­ing value.

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