Boursa Kuwait remains bearish

KUWAIT: Boursa Kuwait ended October in the red zone. The Price Index closed at 6,513.83 points, down by 2.48 percent compared to the closings of the month before, the Weighted Index decreased by 2.51 percent after closing at 419.91 points, whereas the KSX-15 Index closed at 967.81 points decreasing by 2.96 percent. Furthermore, last month’s average turnover decreased by 19.22 percent, compared to the preceding month, reaching KD 20.25 million, whereas trading volume average was 107.76 million shares, recording a decrease of 11.69 percent.

The losses witnessed by the three market indices during the last month came as a result to the selling pressures that included many stocks of all sectors. During the last month, the market was influenced by some negative factors that pushed it to record such losses, headed by the refrain of many traders from trading in light of a continued absence of the positive motivators to contribute in activating the trading and enhancing the purchasing activity, in addition to the watch and cautious state that was controlling some traders who preferred waiting for the end of the disclosure period for the listed companies to announce its financial results for the third quarter of the current year.

In addition, the number of companies that disclosed its nine months results for the current year, reached 48 company only, out of 157 listed company in the official market, meaning that 70 percent of the listed companies in the market did not disclose its results yet, despite the fact that more than two third of the legal disclosure period, which will end in mid of November, have passed. Moreover, the disclosed companies realized around KD 1.07 billion in net profits for the last nine months of the current year, up by 11.34 percent compared to the profits of the same companies for the same period of 2016, where it reached then KD 957.77 million.

Furthermore, Boursa Kuwait lost during the last month around KD 805 million of its market cap, as it reached by the end of the month KD 28.07 billion, down by 2.79 percent from its level in September, where it was KD 28.87 billion, contracting by such its gains since the beginning of the year to reach 10.48 percent compared to its value at end of 2016, where it was KD 25.41 billion. (Note: The market cap for the listed companies in the primary market is calculated based on the latest available official financial data).

For the annual performance, the Price Index ended last month recording 13.32 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 10.48 percent, and the KSX-15 recorded 9.35 percent growth.

Sectors’ Indices

Ten of Boursa Kuwait’s sectors ended last month in the red zone, while one recorded increase. On the other hand, the Health Care sector’s index closed with no change from the week before. The Telecommunications sector headed the losers list as its index declined by 7.41 percent to end the week’s activity at 568.11 points.