Boursa Kuwait eq­ui­ties rally on pos­i­tive sen­ti­ment

BAYAN WEEKLY MAR­KET RE­PORT

Kuwait Times - - BUSINESS -

KUWAIT: Boursa Kuwait ended last week in green zone. The Price In­dex closed at 6,805.31 points, up by 0.36 per­cent from the week be­fore clos­ing, the Weighted In­dex in­creased by 2.36 per­cent af­ter clos­ing at 417.34 points, whereas the KSX-15 In­dex closed at 954.42 points up by 2.48 per­cent. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 40.73 per­cent, com­pared to the pre­ced­ing week, reach­ing KD20.32 mil­lion, whereas trad­ing vol­ume av­er­age was 126.77 mil­lion shares, record­ing an in­crease of 45.68 per­cent.

The three Boursa in­dices were able to end the week’s trad­ing in the green zone sup­ported by the heavy pur­chas­ing op­er­a­tions that tar­geted some lead­ing stocks, es­pe­cially in the Banks sec­tor, in ad­di­tion to the spec­u­la­tive op­er­a­tions that con­cen­trated on the small-cap stocks and the idle stocks, es­pe­cially the ones priced less than its book-value. The mar­ket wit­nessed such per­for­mance dur­ing the last week amid an op­ti­mism in the half-year re­sults of many listed com­pa­nies, es­pe­cially for the lead­ing com­pa­nies’ stocks, which pos­i­tively re­flected on the per­for­mance of the Weighted and KSX-15 in­dices in par­tic­u­lar, which were able to re­al­ize large in­creases dur­ing the week to reach its high­est lev­els since last April. The pos­i­tive per­for­mance for the Boursa dur­ing the last week came in par­al­lel with the in­crease in the trad­ing ac­tiv­ity, com­pared a week ear­lier, es­pe­cially the cash liq­uid­ity which was the high­est, as it reached 43.31 per­cent.

As a re­sult to the good per­for­mance, the Boursa was able to add more than half bil­lion di­nars to its mar­ket cap­i­tal­iza­tion dur­ing the last five ses­sions, as the to­tal value for the listed stocks in the of­fi­cial mar­ket reached by the end of last week KD27.58 bil­lion, against KD26.96 bil­lion at the end of the pre­vi­ous week, up by KD610.09 mil­lion and by 2.26 per­cent. On an an­nual level, the gains of the mar­ket cap reached 8.52 per­cent com­pared to its value at end of 2016, where it reached then KD25.41 bil­lion. (Note: the mar­ket cap­i­tal­iza­tion for the listed com­pa­nies in the pri­mary mar­ket is cal­cu­lated based on the av­er­age num­ber of out­stand­ing shares as per the lat­est avail­able fi­nan­cial state­ments)

As per the daily trad­ing ac­tiv­ity, Boursa Kuwait ini­ti­ated the first ses­sion of the last week record­ing dif­fer­ent gains for the three in­dices, amid a no­tice­able in­crease in the trad­ing ac­tiv­ity, es­pe­cially the cash liq­uid­ity, which recorded a growth of 28.95 per­cent to reach by the end of the ses­sion around KD 21.4 mil­lion, sup­ported by the pur­chas­ing ac­tiv­ity that was present dur­ing the ses­sion and the col­lec­tion op­er­a­tions that con­cen­trated on the lead­ing stocks, in ad­di­tion to the quick spec­u­la­tions ex­e­cuted on some small-cap stocks. On the next ses­sion, the Boursa con­tin­ued its gains, and the three in­dices were able to end the ses­sion in the green zone sup­ported by the con­tin­ued strong pur­chas­ing power that con­cen­trated on the lead­ing and heavy stocks, in ad­di­tion to the quick spec­u­la­tive op­er­a­tions on some small-cap stocks, amid a con­tin­ued in­crease in the value for the sec­ond con­sec­u­tive ses­sion, to reach more than KD25 mil­lion.

The Boursa con­tin­ued its ac­tive per­for­mance in the mid­week ses­sion and was able to re­al­ize gains for the three in­dices amid the con­tin­ued pur­chas­ing op­er­a­tions in con­trol­ling the trad­ing ac­tiv­ity, and the con­cen­tra­tion of the traders over the lead­ing stocks which dis­closed pos­i­tive re­sults for the first half of the year, in ad­di­tion to the con­tin­ued quick spec­u­la­tion on a num­ber of small-cap stocks.

On Wed­nes­day, the Boursa wit­nessed mixed clos­ings for the three in­dices, whereas the Price In­dex and the Weighted in­dex were able to con­tinue re­al­iz­ing small gains at the end of the ses­sion, sup­ported by the ac­tive spec­u­la­tions and the ran­dom pur­chas­ing op­er­a­tions ex­e­cuted on a num­ber of small­cap stocks and some heavy stocks, while KSX-15 In­dex de­clined af­fected by the profit col­lec­tion op­er­a­tions that tar­geted some lead­ing and op­er­a­tional stocks that falls within the In­dex. The end of week ses­sion wit­nessed mixed per­for­mance with chang­ing po­si­tions, as the Price In­dex and the Weighted In­dex fell un­der the in­flu­ence of the profit col­lec­tion op­er­a­tions to close at the end of the ses­sion in the red zone, while the KSX-15 In­dex was able to re­turn to the green zone sup­ported by the pos­i­tive trad­ing wit­nessed by some lead­ing stocks. For the an­nual per­for­mance, the Price In­dex ended last week record­ing 18.39 per­cent an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 9.80 per­cent, and the KSX-15 recorded 7.84 per­cent growth.

Sec­tors’ In­dices

Nine of Boursa Kuwait’s sec­tors ended last week in the green zone, while the other three recorded de­creases. Last week’s high­est gainer was the Banks sec­tor, achiev­ing 3.55 per­cent growth rate as its in­dex closed at 956.70 points. Whereas, in the sec­ond place, the Ba­sic Ma­te­ri­als sec­tor’s in­dex closed at 1,263.25 points record­ing 1.94 per­cent in­crease. The Telecom­mu­ni­ca­tions sec­tor came in third as its in­dex achieved 1.88 per­cent growth, end­ing the week at 609.91 points. On the other hand, The Con­sumer Goods sec­tor headed the losers list as its in­dex de­clined 4.65 per­cent to end the week’s ac­tiv­ity at 1,023.35 points. The In­dus­trial sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 0.39 per­cent, clos­ing 1,887.23 points, fol­lowed by the Con­sumer Ser­vices sec­tor, as its in­dex closed at 1,040.94 points at a loss of 0.17 per­cent.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 240.11 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 37.88 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 29.37 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 186.16 mil­lion shares. On the other hand, the Banks sec­tor’s stocks were the high­est traded in terms of value; with a turnover of around KD44 mil­lion or 43.31 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. KD22.75 mil­lion rep­re­sent­ing 22.39 per­cent of the to­tal mar­ket trad­ing value. — Pre­pared by: Stud­ies & Re­search De­part­ment - Bayan In­vest­ment Co.

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