Boursa Kuwait closes in red; trading activity remains week

Market still grappling to reach the stability stage

KUWAIT: Boursa Kuwait ended last week in the red zone. The Price Index closed at 6,258.47 points, down by 4.43 percent from the week before closing, the Weighted Index decreased by 5.08 percent after closing at 397.67 points, whereas the KSX15 Index closed at 910.13 points down by 5.72 percent. Furthermore, last week’s average daily turnover increased by 60.12 percent, compared to the preceding week, reaching KD 24.87 million, whereas trading volume average was 122.06 million shares, recording an increase of 51.91 percent.

The trading activity during the last week showed that the market could not yet reach the stability stage and is was not able to cross the red zone on the weekly level, as its three indices ended the week’s trading recording grouped losses for the third consecutive week, amid control of the red color over its performance during most of the daily sessions of the week, affected by the random purchasing operations that included many listed stocks, headed by the leading and operational ones, which caused the three indices to slide down reaching low levels, especially KSX-15 Index, that reached in once session of last week its lowest closing level in around a year.

The Boursa lost by the end of last week approximately KD 1.45 billion, as its market capitalization reached KD 26.57 billion after it was KD 28.01 billion in the previous week, which means that the market lost 5.16 percent of its total market cap in five days only, to contract by such its gains since the beginning of the current year and reach 4.56 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 official financial statements). As per the daily trading activity; the first three sessions witnessed a continuous drop to the market and the three indices lost many points due to the increased selling operations executed by the traders, especially KSX-15 Index that lost around 90 point of its value during the three sessions, amid a gradual growth in the trading levels of both the value or the volume, whereas the selling operations lead to a drop in most of the stocks’ prices, especially the leading stocks that were subject to a noticeable pressure during the same days.

On Wednesday’s and Thursday’s sessions, the market witnessed a return to the green color once again, and its three indices were able to redirect its route to the green zone, amid random purchasing operations that targeted many stocks of previous drops in prices and that reached tempting purchasing levels, which enabled the market to compensate about KD 700 million of its market cap losses that it recorded in the first three sessions of the week, however the three indices’ losses remained the most, on the weekly level, for the current year.

For the annual performance, the Price Index ended last week recording 8.88 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 4.63 percent, and the KSX-15 recorded 2.84 percent growth.

Nine sectors edge lower amid selloff

Sectors’ indices

Nine of Boursa Kuwait’s sectors ended last week in the red zone, while one recorded increase, On the other hand, the Health Care & Technology sector’s index closed with no change from the week before. The Consumer Goods sector headed the losers list as its index declined by 8.03 percent to end the week’s activity at 897.68 points. The Financial Services sector was second on the losers’ list, which index declined by 7.46 percent, closing at 626 points, followed by the Oil & Gas sector, as its index closed at 926.21 points at a loss of 6.74 percent. The Basic Materials sector was the least declining as its index closed at 1,252.42 points with a 2.02 percent decrease. On the other hand, the Consumer Services sector was last week only gainer, which index grew by 1.50 percent, closing at 941.20 points.

Sectors’ activity

The Financial Services sector dominated a total trade volume of around 214.99 million shares changing hands during last week, representing 35.23 percent of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 24.22 percent of last week’s total trading volume, with a total of around 147.83 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 56.75 million or 45.63 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 19.25 million representing 15.48 percent of the total market trading value. Prepared by: Studies & Research Department — Bayan Investment Co.