Boursa Kuwait ekes out mar­ginal gains

Kuwait Times - - BUSINESS -

KUWAIT: Boursa Kuwait ended last week with mixed zone. The Price In­dex closed at 6,825.70 points, up by 0.30 per­cent from the week be­fore clos­ing, the Weighted In­dex de­creased by 1.11 per­cent af­ter clos­ing at 412.70 points, whereas the KSX-15 In­dex closed at 944.45 points down by 1.04 per­cent. Fur­ther­more, last week’s av­er­age daily turnover de­creased by 37.79 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 8.98 mil­lion, whereas trad­ing vol­ume av­er­age was 60.75 mil­lion shares, record­ing a de­crease of 30.18 per­cent.

The three stock in­dices wit­nessed a mixed clos­ing af­fected by the dif­fer­ent traders’ pref­er­ence in the mar­ket, whereas the Price In­dex was able to re­al­ize small weekly in­crease, in light of the con­trol of the spec­u­la­tive op­er­a­tions over many small-cap listed stocks. How­ever, the Weighted and KSX-15 in­dices could not record gains, af­fected by the de­cline of some lead­ing and op­er­a­tional stocks, es­pe­cially in the Tech­nol­ogy & Telecom­mu­ni­ca­tion sec­tors, as it wit­nessed profit col­lec­tion op­er­a­tions caused it to drop by the end of the week. Also, it was no­ticed dur­ing the last week the re­turn of the pur­chas­ing op­er­a­tions on some in­vest­ment groups in the mar­ket, where it wit­nessed col­lec­tion op­er­a­tions es­pe­cially af­ter its prices reached tempt­ing lev­els, which pos­i­tively re­flected on the Price In­dex in par­tic­u­lar.

The mar­ket wit­nessed such per­for­mance in light of gen­eral state of watch & cau­tious in trad­ing by many in­vestors, wait­ing for the listed com­pa­nies dis­clo­sures of its first half fi­nan­cial data for the cur­rent year. More­over, the Boursa lost more than KD 300 mil­lion in the last five ses­sions, whereas the to­tal value of the listed stocks in the pri­mary mar­ket reached by the end of last week KD 27.28 bil­lion, against KD 27.58 bil­lion at the end of the ear­lier week, down by 1.09 per­cent. On an an­nual level, the mar­ket cap gains reached 7.35 per­cent com­pared to its value at end of 2016, where it reached then KD 25.41 bil­lion. (Note: The mar­ket cap for the listed com­pa­nies in the pri­mary mar­ket is cal­cu­lated based on the av­er­age out­stand­ing shares as per the lat­est avail­able fi­nan­cial state­ments)

As per the daily trad­ing ac­tiv­ity; Sun­day ses­sion wit­nessed a de­cline of the three in­dices af­fected by the strong sell­ing op­er­a­tions that many traded stocks were sub­ject to, es­pe­cially in the Banks sec­tor, in ad­di­tion to the con­tin­ued profit col­lec­tion op­er­a­tions ex­e­cuted on some small-cap stocks.

On Mon­day ses­sion, the mar­ket wit­nessed mixed clos­ings of the three in­dices, whereas the Price In­dex was able to re­al­ize good gains that en­abled it to com­pen­sate its pre­vi­ous ses­sion’s loss, sup­ported by the pur­chas­ing pow­ers and the spec­u­la­tive op­er­a­tions that con­cen­trated on the small-cap stocks in par­tic­u­lar, while the profit col­lec­tion op­er­a­tions con­tin­ued its con­trol over the trad­ing of the lead­ing and op­er­a­tional stocks, which pushed the Weighted and KSX-15 in­dices to drop for the sec­ond con­sec­u­tive ses­sion.

On the mid-week ses­sion, the fluc­tu­a­tion con­tin­ued to con­trol over the trad­ing be­hav­ior but with chang­ing po­si­tions, as the Price In­dex could not con­tinue its up­ward di­rec­tion and closed by the end of the ses­sion in the red zone af­fected by the quick profit col­lec­tion op­er­a­tions ex­e­cuted on the small-cap stocks, while the Weighted and KSX-15 in­dices suc­ceeded in in­creas­ing sup­ported by the re­turn of the pur­chas­ing op­er­a­tions on some heavy stocks.

On Wed­nes­day’s ses­sion, the mar­ket in­dices re­turned once again to close in the red zone, amid a sell­ing trend that in­cluded many stocks of dif­fer­ent sec­tors, es­pe­cially af­ter the in­creases it wit­nessed in the pre­vi­ous ses­sions; such de­cline came de­spite the growth in the mar­ket trad­ing ac­tiv­ity com­pared to the pre­vi­ous ses­sion, whereas the value in­creased by around 14 per­cent, and the vol­ume grew by around 15 per­cent. In ad­di­tion, the Boursa wit­nessed on Thurs­day’s ses­sion a re­turn of its three in­dices to fluc­tu­ate, as the Price In­dex and KSX-15 In­dex were able to end the last ses­sion of the week in the green zone, while the Weighted In­dex went against the cur­rent and closed the ses­sion with some loss. Such per­for­mance came amid a de­cline in the trad­ing lev­els com­pared to Wed­nes­day’s ses­sion, as the vol­ume de­creased by about 27 per­cent, and the value con­tracted by around 25 per­cent.

For the an­nual per­for­mance, the Price In­dex ended last week record­ing 18.75 per­cent an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 8.58 per­cent, and the KSX-15 recorded 6.72 per­cent growth.

Sec­tors’ In­dices

Six of Boursa Kuwait’s sec­tors ended last week in the green zone, while the other six recorded de­creases. Last week’s high­est gainer was the Health Care sec­tor, achiev­ing 11.48 per­cent growth rate as its in­dex closed at 1,683.91 points. Whereas, in the sec­ond place, the Oil & Gas sec­tor’s in­dex closed at 1,090.94 points record­ing 7.75 per­cent in­crease. The In­sur­ance sec­tor came in third as its in­dex achieved 3.49 per­cent growth, end­ing the week at 1,056.43 points. On the other hand, The Tech­nol­ogy sec­tor headed the losers list as its in­dex de­clined 10.98 per­cent to end the week’s ac­tiv­ity at 625.78 points. The Telecom­mu­ni­ca­tions sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 2.40 per­cent, clos­ing 595.30 points, fol­lowed by the Banks sec­tor, as its in­dex closed at 943.73 points at a loss of 1.36 per­cent.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 122.07 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 40.19 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 24.28 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 73.77 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 17.77 mil­lion or 39.56 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 10.83 mil­lion rep­re­sent­ing 24.12 per­cent of the to­tal mar­ket trad­ing value.

—Pre­pared by: Stud­ies & Re­search Depart­ment - Bayan In­vest­ment Co.

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