Boursa Kuwait up on re­newed buy­ing in­ter­est

BAYAN WEEKLY MAR­KET RE­PORT

Kuwait Times - - BUSINESS -

Boursa Kuwait ended last week in the green zone. The Price In­dex closed at 6,845.01 points, up by 0.28 per­cent from the week be­fore clos­ing, the Weighted In­dex in­creased by 1.76 per­cent af­ter clos­ing at 419.95 points, whereas the KSX-15 In­dex closed at 960.57 points up by 1.71 per­cent. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 51.56 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 13.61 mil­lion, whereas trad­ing vol­ume av­er­age was 70.70 mil­lion shares, record­ing an in­crease of 16.36 per­cent.

The Boursa was able to end the last week with good gains to its three in­dices, sup­ported by the ac­tive pur­chas­ing op­er­a­tions that in­cluded many listed stocks, es­pe­cially the lead­ing and op­er­a­tional ones in the Tech­nol­ogy and Telecom­mu­ni­ca­tions sec­tors, the most in­creas­ing sec­tors dur­ing the last week. The mar­ket wit­nessed such per­for­mance in light of many traders’ op­ti­mism in the listed com­pa­nies’ re­sults for the first half of the cur­rent year, which caused the in­crease in the pur­chas­ing op­er­a­tions that en­hanced the cash liq­uid­ity to reached around KD 70 mil­lion dur­ing all the week’s ses­sions.

Also, the Boursa gained more than KD 400 mil­lion in the last five ses­sions, whereas the to­tal value of the listed stocks (in the pri­mary mar­ket) reached by the end of the last week KD 27.75 bil­lion, against KD 27.28 bil­lion at the end of the pre­vi­ous week, and up by 1.74 per­cent. On an an­nual level, the mar­ket cap­i­tal gains reached 9.22 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 num­ber of out­stand­ing shares as per the lat­est avail­able fi­nan­cial state­ments).

As per the daily trad­ing ac­tiv­ity; Sun­day’s ses­sion wit­nessed a mixed per­for­mance, where the Price In­dex ended the trad­ing ses­sion in the red zone af­fected by the profit col­lec­tion op­er­a­tions that tar­geted some small­cap stocks, es­pe­cially the ones be­ing traded less than 100 Fils, while the Weighted and KSX- 15 in­dices were able to end the ses­sion in the green zone sup­ported by the ac­tive pur­chas­ing op­er­a­tions that con­cen­trated on some lead­ing stocks es­pe­cially in the Banks sec­tor. On Mon­day’s ses­sion, the three in­dices closed in the green zone and were able to re­al­ize dif­fer­ent gains, sup­ported by the ac­tive pur­chas­ing trend on the lead­ing and heavy stocks, in ad­di­tion to the quick spec­u­la­tion on some small-cap stocks.

On the mid-week ses­sion, the fluc­tu­a­tion re­turned to con­trol the three in­dices’ per­for­mance, whereas the Price In­dex could not hold its up­ward di­rec­tion and closed by the end of the ses­sion in the red zone af­fected by the quick profit col­lec­tion op­er­a­tions that con­cen­trated on the small-cap stocks, es­pe­cially in the In­sur­ance and Fi­nan­cial Ser­vices sec­tors, while the Weighted and KSX-15 in­dices were able to in­crease, sup­ported by the con­tin­ued pur­chas­ing trend on the heavy stocks, amid a no­tice­able growth in the trad­ing ac­tiv­ity, es­pe­cially the value, which jumped by about 90 per­cent com­pared to the pre­vi­ous ses­sion.

On Wed­nes­day’s ses­sion, the fluc­tu­a­tion con­tin­ued its con­trol over the mar­ket in­dices’ per­for­mance, whereas the Price and Weighted in­dices de­clined af­fected by the profit col­lec­tion op­er­a­tions and in­cluded some stocks that re­al­ized in­creases in the pre­vi­ous ses­sions, while the KSX-15 In­dex went against the cur­rent and was able to end the ses­sion in the green zone, in light of the con­tin­ued con­cen­tra­tion of the traders on the lead­ing stocks, es­pe­cially in the Tech­nol­ogy and Banks sec­tors. On Thurs­day’s ses­sion, the three mar­ket in­dices changed po­si­tions, as the Price and Weighted in­dices suc­ceeded in re­turn­ing to the green zone, how­ever the profit col­lec­tion op­er­a­tions ex­e­cuted on some lead­ing stocks, pushed the KSX-15 In­dex to end the ses­sion in the losses zone.

For the an­nual per­for­mance, the Price In­dex ended last week record­ing 19.08 per­cent an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 10.49 per­cent, and the KSX-15 recorded 8.54 per­cent growth.

Sec­tors’ In­dices

Eight of Boursa Kuwait’s sec­tors ended last week in the green zone, three recorded de­clines, whereas the Health Care sec­tor’s in­dex closed with no change from the week be­fore. Last week’s high­est gainer was the Tech­nol­ogy sec­tor, achiev­ing 4.54 per­cent growth rate as its in­dex closed at 654.21 points. Whereas, in the sec­ond place, the Telecom­mu­ni­ca­tions sec­tor’s in­dex closed at 605.01 points record­ing 1.63 per­cent in­crease. The Ba­sic Ma­te­ri­als sec­tor came in third as its in­dex achieved 1.45 per­cent growth, end­ing the week at 1,265.99 points.

On the other hand, The Oil & Gas sec­tor headed the losers list as its in­dex de­clined 2.51 per­cent to end the week’s ac­tiv­ity at 1,063.60 points. The Con­sumer Ser­vices sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 0.26 per­cent, clos­ing 1,048.83 points, followed by the Con­sumer Goods sec­tor, as its in­dex closed at 1,023.47 points at a loss of 0.09 per­cent.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 132.38 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 37.45 per­cent of the to­tal mar­ket trad­ing vol­ume. The Banks sec­tor was sec­ond in terms of trad­ing vol­ume as the sec­tor’s traded shares were 19.37 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 68.45 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 23.91 mil­lion or 35.13 per­cent of last week’s to­tal mar­ket trad­ing value. The Telecom­mu­ni­ca­tions sec­tor took the sec­ond place as the sec­tor’s last week turnover was ap­prox. KD 15.99 mil­lion rep­re­sent­ing 23.49 per­cent of the to­tal mar­ket trad­ing value.

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

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