Boursa Kuwait turns bearish, indices drop
KUWAIT: Boursa Kuwait ended last week in the red zone. The Premier Market Index closed at 5,257.16 points, down by 1.09 percent, the Main Market Index declined by 0.49 percent after closing at 4,718.42 points, and the All-Share Index closed at 5,065.81 points down by 0.89 percent. Furthermore, last week’s average daily turnover decreased by 5.66 percent, compared to the preceding week, reaching around KD 11.10 million, whereas trading volume average reached around 66.73 million shares, recording a drop of 11.98 percent.
The Boursa lost around KD 255 million, as the market capitalization for the total listed stocks dropped by the end of last week to reach about KD 28.35 billion against KD 28.60 billion in a week earlier, down by 0.89 percent. The Boursa gains since the application of the new market segmentation contracted to reach around KD 490.50 million or 1.76 percent. (Note: The Market capitalization for the listed companies in the Boursa is calculated based on the weighted average number of outstanding shares as per the latest available official financial statements).
In addition, the weak performance witnessed by the Boursa during the last week was caused by some investors’ refrain from trading, especially in light of the waiting state for the listed companies results for the third quarter period of the current year, in addition to the active profit collection operations that the Boursa is witnessing for the past couple of weeks. Also, this performance came in parallel with the drop of the trading indicators, whereas the total number of traded stocks decreased by 11.98 percent reaching 333.67 million stock, while the total trading value declined by 5.66 percent to reach KD 59.99 million.
Moreover, the selling pressures witnessed by the Boursa concentrated on many listed stocks in the Market, headed by the stocks listed in the Premier Market, which was reflected on the Premier Market Index, the most declining index among the three Market indices, as it recorded a loss of 1.09 percent by the end of last week. Last week witnessed trading over 147 stock out of 175 listed stock in the Market, where prices of 43 stock increased against prices of 88 stock decreased, and prices of 44 stock remained at no change.
Eight of Boursa Kuwait’s sectors ended last week in the red zone, while two recorded increases, and the Health Care & Technology sectors remained at no change. Last week’s highest loser was the Consumer Goods sector, as its index declined by 2.10 percent to end the week’s activity at 815.54 points. The Industrial sector was second on the losers’ list, which index declined by 1.59 percent, closing at 967.69 points, followed by the Real Estate sector, which index declined by 1.49 percent, closing at 871.47 points. On the other hand, last week’s highest gainer was the Basic Materials sector, achieving 4.21 percent growth rate as its index closed at 1,225.83 points. The Insurance sector came in the second place, as its index closed at 962.42 points recording 0.08 percent increase.
The Financial Services sector dominated a total trade volume of around 101.43 million shares changing hands during last week, representing 30.40 percent of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 28.15 percent of last week’s total trading volume, with a total of around 93.92 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 31.18 million or 51.97 percent of last week’s total market trading value. The Industrial sector took the second place as the sector’s last week turnover was approx. KD 7.22 million representing 12.04 percent of the total market trading value. — Prepared by the Studies & Research Department , Bayan Investment Co.