Boursa Kuwait stocks rally amid solid buying interest
Three indices pare losses on renewed optimism
KUWAIT: Boursa Kuwait ended last week in the green zone. The Price Index closed at 6,331.72 points, up by 2.34 percent from the week before closing, the Weighted Index increased by 1.51 percent after closing at 399.78 points, whereas the KSX-15 Index closed at 910.07 points up by 1.68 percent. Furthermore, the week’s average daily turnover decreased by 35.50 percent, compared to the preceding week, reaching K.D 8.11 million, whereas trading volume average was 55.04 million shares, recording a decrease of 19.41 percent.
As far as the weekly performance of Boursa Kuwait; the trading activity during the last week showed that the market was able to record a weekly growth for its three indices and compensated its previous week’s losses in light of the optimism trend that controlled many traders after the new government reformed, which caused a wide purchasing activity in the market that included many listed stocks headed by the small-cap ones, and was apparent on the Price Index performance in particular, which over performed its peers, the Weighted and KSX-15 indices in the recorded weekly gains.
Also, the Boursa recorded during the last five sessions market gains of over KD 430 million, as the total market capitalization for the listed stocks in the regular market reached by the end of last week KD 26.82 billion, up by 1.64 percent of its value in the previous week, where it reached then KD 26.38 billion. On an annual level, the market cap gains reached 5.54 percent compared to its value at end of last year where it reached KD 25.41 billion. (Note: The market cap for the listed companies in the Regular Market is calculated based on the average number of outstanding shares as per the latest available official financial statements).
On the other hand, last week the market witnessed an increase in prices of 73 stock out of 157 listed stock in the Regular Market, compared to the week earlier, however 45 stock dropped, and 39 stock remained unchanged.
For the daily trading activity; the market initiated its first session of the week with a decline that included all its indices, affected by the selling operations witnessed by the market and included many stocks, amid a refrain from a large group of traders from trading, causing a drop in the cash liquidity during the session to reach its lowest level in six months. The next session followed the first in performance, as the market indices continued recording losses affected by the continued random selling pressures that included many stocks, despite the large increase in the trading activity, where the volume increased by 106 percent and the cash liquidity grew by the end of the session by around 82 percent.
In addition, the market witnessed a clear transformation beginning of Tuesday’s session, where it was able to redirect its indices to the green zone, supported by the strong purchasing operations witnessed by the market, and concentrated on the leading and operational stocks; while Wednesday’s session continued the positive performance and the Boursa indices were able to enhance its gains as a result of the continued purchasing operations in controlling the trading activity. The market continued also on the end of week session in recording gains and its three indices were able to realize good gains, with highest portion given to the Price Index, supported by the purchasing operations that included many listed stocks headed by the small-cap ones.
For the annual performance, the Price Index ended last week recording 10.15 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 5.18 percent, and the KSX-15 recorded 2.83 percent growth.
Sectors’ Indices
Ten of Boursa Kuwait’s sectors ended last week in the green zone, one recorded declines, whereas the Health Care sector’s index closed with no change from the week before.
Last week’s highest gainer was the Industrial sector, achieving 6.43 percent growth rate as its index closed at 1,833.36 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 967.87 points recording 3.77 percent increase. The Technology sector came in third as its index achieved 3.62 percent growth, ending the week at 497.65 points.
On the other hand, the Insurance sector was last week’s only loser as its index declined by 1.30 percent to end the week’s activity at 1,031.44 points.
Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 126.34 million shares changing hands during last week, representing 45.91 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 18.90 percent of last week’s total trading volume, with a total of around 52.01 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 14.96 million or 36.88 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 9.60 million representing 23.67 percent of the total market trading value.
—Prepared by: Studies & Research Department - Bayan Investment Co.