Boursa Kuwait eq­ui­ties edge higher

Kuwait Times - - BUSINESS -

Boursa Kuwait ended last week in the green zone. The Price In­dex closed at 6,913.86 points, up by 0.24 per­cent from the week be­fore clos­ing, the Weighted In­dex in­creased by 1.53 per­cent af­ter clos­ing at 441.32 points, whereas the KSX-15 In­dex closed at 1,027.07 points up by 2.78 per­cent. Fur­ther­more, last week’s av­er­age daily turnover in­creased by 116.60 per­cent, com­pared to the pre­ced­ing week, reach­ing KD 33.55 mil­lion, whereas trad­ing vol­ume av­er­age was 139.14 mil­lion shares, record­ing an in­crease of 79.63 per­cent.

The three Boursa indices were able to close in the green zone, es­pe­cially the Weighted and KSX-15 indices which ben­e­fited from the strong pur­chas­ing trend that in­cluded many lead­ing and heavy stocks, and mostly the stocks nom­i­nated to join “FTSE In­dex” for emerg­ing mar­kets, which en­hanced the cash liq­uid­ity in the mar­ket to a great ex­tent, as the daily av­er­age for trad­ing value reached around KD 33 mil­lion, up by 116.6 per­cent com­pared to the pre­vi­ous week’s trad­ing, while the Price In­dex wit­nessed dur­ing the last week a fluc­tu­ated per­for­mance with an up­ward trend as a re­sult to the con­tin­ued pres­ence of the quick spec­u­la­tive op­er­a­tions that con­cen­trated on the small-cap stocks, in ad­di­tion to the profit col­lec­tion op­er­a­tions that the mar­ket was wit­ness­ing dur­ing some of the daily ses­sions, which rel­a­tively light­ened the Price In­dex’s gains on the weekly level.

In ad­di­tion, the mar­ket cap­i­tal­iza­tion for the Boursa Kuwait reached dur­ing the last five ses­sions more than KD 440 mil­lion, as it reached by the end of last week about KD 29.48 bil­lion, up by 1.52 per­cent com­pared to its level in a week ear­lier, where it was KD 29.04 bil­lion; On an an­nual level, the mar­ket cap gains since the be­gin­ning of the year, reached more than KD 4 bil­lion, or 16.03 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, the mar­ket ini­ti­ated the first ses­sion of the last week with an in­crease to all its indices, in light of the ac­tive pos­i­tive trad­ing and the pur­chas­ing op­er­a­tions that con­cen­trated on the lead­ing and heavy stocks, es­pe­cially in the Banks sec­tor, where more than half of the cash liq­uid­ity con­cen­trated at by the end of the ses­sion, which re­flected on all the mar­ket in­di­ca­tors’ per­for­mance, es­pe­cially the KSX-15 In­dex that was able to re­turn to above 1000 point clos­ing level, to end the ses­sion at its high­est level since year 2015. Also, the mar­ket con­tin­ued re­al­iz­ing gains on the sec­ond ses­sion, how­ever lim­ited, and the three indices con­tin­ued in in­creas­ing sup­ported by the con­tin­ued sup­port of the lead­ing stocks, amid a con­tin­ued no­tice­able growth in the trad­ing value, to end the ses­sion at its high­est lev­els in 5 months, whereas it reached ap­prox­i­mately KD 37 mil­lion.

On the mid-week ses­sion, the mar­ket wit­nessed profit col­lec­tion op­er­a­tions in­cluded many stocks that re­al­ized good gains in the pre­vi­ous ses­sions, which pushed the three indices to close in the red zone in par­al­lel with a lim­ited de­cline in the trad­ing ac­tiv­ity, on both lev­els, the cash liq­uid­ity and the vol­ume.

The Boursa ended Wed­nes­day’s ses­sion with mixed clos­ings to the three indices, as the Price In­dex was able to re­turn to the green zone once again, sup­ported by the quick spec­u­la­tions and the pur­chas­ing op­er­a­tions that con­cen­trated on some idle stocks, while the Weighted and KSX15 indices con­tin­ued record­ing losses for the sec­ond con­sec­u­tive ses­sion af­fected by the con­tin­ued con­cen­tra­tion of the profit col­lec­tion op­er­a­tions on the lead­ing stocks, while fluc­tu­a­tion con­tin­ued its con­trol over the Boursa indices at the end of week ses­sion, how­ever with chang­ing po­si­tions, as the Weighted and KSX-15 indices were able to re­turn to the profit zone once again, sup­ported by the re­turn of the pur­chas­ing op­er­a­tions in con­trol over the lead­ing stocks trad­ing, which en­hanced the indices’ gains on the weekly level; while the profit col­lec­tion op­er­a­tions that tar­geted some small-cap stocks, pushed the Price In­dex to record lim­ited losses by the end of the ses­sion, which lim­ited its weekly gains to a cer­tain ex­tent. For the an­nual per­for­mance, the Price In­dex ended last week record­ing 20.28 per­cent an­nual gain com­pared to its clos­ing in 2016, while the Weighted In­dex in­creased by 16.11 per­cent, and the KSX-15 recorded 16.05 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 Industrial sec­tor’s in­dex closed at 1,884.67 points record­ing 1.07 per­cent in­crease. The Telecom­mu­ni­ca­tions sec­tor came in third as its in­dex achieved 1.04 per­cent growth, end­ing the week at 619.43 points.

On the other hand, The Con­sumer Ser­vices sec­tor headed the losers list as its in­dex de­clined 3.74 per­cent to end the week’s ac­tiv­ity at 1,026.48 points. The In­sur­ance sec­tor was sec­ond on the losers’ list, which in­dex de­clined by 1.33 per­cent, clos­ing 1,154.04 points, fol­lowed by the Oil & Gas sec­tor, as its in­dex closed at 1,021.70 points at a loss 0.99 per­cent.

Sec­tors’ Ac­tiv­ity

The Fi­nan­cial Ser­vices sec­tor dom­i­nated a to­tal trade vol­ume of around 234.38 mil­lion shares chang­ing hands dur­ing last week, rep­re­sent­ing 33.69 per­cent of the to­tal mar­ket trad­ing vol­ume. The Banks sec­tor was sec­ond in terms of trad­ing vol­ume as the sec­tor’s traded shares were 28.77 per­cent of last week’s to­tal trad­ing vol­ume, with a to­tal of around 200.16 mil­lion shares.

On the other hand, the Banks sec­tor’s stocks were the high­est traded in terms of value; with a turnover of around KD 77.87 mil­lion or 46.42 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 31.30 mil­lion rep­re­sent­ing 18.66 per­cent of the to­tal mar­ket trad­ing value. —Pre­pared by: Stud­ies & Re­search Depart­ment - Bayan In­vest­ment Co.

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