Boursa Kuwait mixed amid profit-book­ing

BAYAN IN­VEST­MENT WEEKLY MAR­KET RE­PORT

Kuwait Times - - BUSINESS -

KUWAIT: Boursa Kuwait ended last week on a mixed board. The Price In­dex closed at 6,781.02 points, down by 0.11 per­cent from the week be­fore clos­ing, the Weighted In­dex in­creased by 0.76 per­cent af­ter clos­ing at 407.70 points, whereas the KSX-15 In­dex closed at 931.35 points up by 0.98 per­cent. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 21.01 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 14.44 mil­lion, whereas trad­ing vol­ume av­er­age was 87.02 mil­lion shares, record­ing an in­crease of 11.87 per­cent.

The three Boursa in­dices closed the week mixed com­pared to the pre­vi­ous week’s clos­ing, whereas the Weighted and KSX-15 in­dices were able to re­al­ize gains for the sec­ond con­sec­u­tive week, sup­ported by the con­tin­ued pur­chas­ing and col­lec­tion op­er­a­tions ex­e­cuted on the lead­ing and op­er­a­tional stocks, es­pe­cially in the Banks sec­tor, while the Price In­dex went against the cur­rent and ended the week’s trad­ing in the red zone af­fected by the ac­tive spec­u­la­tions and the profit col­lec­tion op­er­a­tions ex­e­cuted on the small-cap stocks, es­pe­cially af­ter the in­creases it re­al­ized dur­ing the pre­vi­ous pe­riod.

The mar­ket wit­nessed such fluc­tu­a­tion amid a con­tin­ued con­trol of watch and cau­tious state over many traders, wait­ing for the listed com­pa­nies dis­clo­sures of its fi­nan­cial re­sults for the first half of the cur­rent year, es­pe­cially that more than half of the le­gal pe­riod given for the listed com­pa­nies to dis­close its fis­cal re­sults have passed, which will end by the mid of the next month.

More­over, the mar­ket cap­i­tal­iza­tion for Boursa Kuwait reached by the end of last week around KD 26.96 bil­lion, up by 0.91 per­cent com­pared to its level in a week ear­lier, where it was KD 26.72 bil­lion. On an an­nual level, the mar­ket cap gains for the listed com­pa­nies in the of­fi­cial mar­ket reached 6.12 per­cent com­pared to its value at end of year 2016, where it reached then KD 25.41 bil­lion.

As far as the daily trad­ing ac­tiv­ity; the Boursa ended the first ses­sion of the week with a grouped in­crease for its three in­dices, as it was able to do so in light of the in­creased pur­chas­ing op­er­a­tions ex­e­cuted on many listed stocks in the mar­ket headed by the lead­ing and op­er­a­tional, in ad­di­tion to the quick spec­u­la­tion that the op­er­a­tions took as a type, and were ex­e­cuted on the small-cap stocks in par­ticu- lar, ex­e­cuted on the stocks be­ing traded be­low its par value. The mar­ket per­for­mance dur­ing the be­gin­ning of week ses­sion came amid a rel­a­tively sta­ble cash liq­uid­ity lev­els, whereas the value in­creased by 1 per­cent only, af­ter it reached by the end of the ses­sion KD 9.15 mil­lion. The mar­ket wit­nessed in the sec­ond ses­sion a fluc­tu­a­tion in the three in­dices’ clos­ings, whereas the Price and Weighted in­dices ended the ses­sion in the red zone due to the profit col­lec­tion op­er­a­tions ex­e­cuted on the small-cap stocks, while the KSX-15 In­dex was able to re­al­ize some gain af­fected by the con­tin­u­ous col­lec­tion op­er­a­tions that tar­geted some lead­ing stocks. Such fluc­tu­a­tion came amid a no­tice­able growth in the trad­ing ac­tiv­ity dur­ing the ses­sion on both lev­els , the vol­ume or the cash liq­uid­ity, as the num­ber of stocks be­ing traded dur­ing the ses­sion in­creased by 54 per­cent, and the trad­ing value grew by 62 per­cent.

On the mid-week ses­sion, the three mar­ket in­dices were able to re­turn once again to close in the green zone, sup­ported by the ac­tive trad­ing and the col­lec­tion op­er­a­tions that tar­geted many listed stocks headed by the lead­ing stocks in the Banks sec­tor, es­pe­cially af­ter it dis­closed its half year fi­nan­cial re­sults for the pe­riod ended on 30 June 2017, and were within the pos­i­tive range.

On Wed­nes­day’s ses­sion, the three mar­ket in­dices di­verted its di­rec­tion down­ward to end the ses­sion in the red zone, as a re­sult to the profit col­lec­tion op­er­a­tions ex­e­cuted by the traders on many listed stocks of dif­fer­ent sec­tors, which came due to the no­tice­able in­creases re­al­ized by the stocks in the pre­vi­ous ses­sions to make the profit col­lec­tion op­er­a­tions a com­mon sense ac­tion to re­build new po­si­tions for the stocks. On the last ses­sion of the week, the mar­ket in­dices re­turned to fluc­tu­ate, as the Price In­dex con­tin­ued in de­clin­ing and los­ing points af­fected by the profit col­lec­tion op­er­a­tions ex­e­cuted on some small-cap stocks to end the ses­sion los­ing all its gains re­al­ized since the be­gin­ning of the week, while the Weighted and KSX-15 in­dices were able to record growth, sup­ported by the re­turn of the pur­chas­ing op­er­a­tions on the lead­ing stocks, en­hanc­ing by such its weekly gains.

For the an­nual per­for­mance, the Price In­dex ended last week record­ing 17.97 per­cent an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 7.26 per­cent, and the KSX-15 recorded 5.23 per­cent growth.

Sec­tors’ in­dices

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 Tech­nol­ogy sec­tor, achiev­ing 4.64 per­cent growth rate as its in­dex closed at 696.44 points. Whereas, in the sec­ond place, the Fi­nan­cial Ser­vices sec­tor’s in­dex closed at 687.91 points record­ing 1.34 per­cent in­crease. The Real Es­tate sec­tor came in third as its in­dex achieved 1.14 per­cent growth, end­ing the week at 955.82 points.

On the other hand, The Health Care sec­tor headed the losers list as its in­dex de­clined 12.95 per­cent to end the week’s ac­tiv­ity at 1,499.39 points. The Oil & Gas sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 2.67 per­cent, clos­ing 1,009.07 points, fol­lowed by the Con­sumer Goods sec­tor, as its in­dex closed at 1,073.22 points at a loss of 1.17 per­cent. The In­surance sec­tor was the least de­clin­ing as its in­dex closed at 1,005.53 points with a 0.46 per­cent de­crease.

Sec­tors’ ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 183.44 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 42.16 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 24.86 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 108.14 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 27.84 mil­lion or 38.56 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 16.15 mil­lion rep­re­sent­ing 22.37 per­cent of the to­tal mar­ket trad­ing value.

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