Indices end week with mixed performances

Boursa Kuwait ended last week with mixed performance. The Premier Market Index closed at 4,773.19 points, up by 0.16%, the Main Market Index decreased by 0.51% after closing at 4,839.37 points, whereas the All-Share Market Index closed at 4,797.48 points down by 0.09%. Furthermore, last week’s average daily turnover decreased by 11%, compared to the preceding week, reaching K.D 12.28 million, whereas trading volume average was 73.37 million shares, recording an increase of 4.94%.

The Boursa ended last week’s trading with mixed closings to its three indices, whereas the Main and All-Share indices declined as a result to the selling operations executed on many listed stocks, especially the small-cap stocks listed in the Main Market, the most declining stocks by the end of the week. While some leading stocks, which acquired the most cash liquidity pumped to the market, witnessed random purchasing operations contributed into pushing the Premier Market Index to close in the green zone by the end of the week. Such performance came in light of a continued watch by the traders to the listed companies’ disclosures of its first quarter financial results, which they will build their investment decisions based on for the next period.

The Boursa lost around K.D. 89 million during the last four sessions only, as its market capitalization reached by the end of last week K.D. 26.48 billion, down by 0.33% from its level in a week earlier, where it was K.D. 26.57 then. The Boursa lost since the initiation of Market Development 2 phase on the beginning of the current month to date around K.D. 1.37 billion, down by 4.93%. (Note: The market cap for the listed companies in the Market is calculated based on the weighted average number of outstanding shares as per the latest available official financial statements).

As far as the daily trading activity during the last week, the three Market indices were able to record some gains in the first session of the week, supported by the purchasing operations that included many stocks especially in the Banks sector, after disclosing some banks of its new fiscal results, which contributed in improving the traders’ physiological state to a certain extent. Also, the Market realized such gains amid a decreased trading indicators of the value or the volume, whereas the traded number of stocks dropped by 8.56%, while the cash liquidity declined by the end of the session by 27.27%.

The second session of the week witnessed a mixed closing for the three indices, as the Premiere Market Index continued its increase supported by the continued random purchasing operations that concentrated on some heavy stocks, while the Main and All-Share indices declined affected by the profit collection operations that included many small-cap stocks, amid a growth in the trading indicators compared to the previous session, whereas the volume increased by 18.82%, and the cash liquidity grew by 11.77%.

The third session of last week witnessed a continued fluctuation of the three Market indices, with changing positions, where the Premiere and AllShare indices declined, and the Main Market index went against the current and ended the session in the green zone. Such fluctuation came in light of the profit collection operations that included some leading stocks, against some random purchasing operations executed on a number of small-cap stocks, especially after the decrease in prices of such stocks, reaching tempting purchasing levels.

On the end of week session however, the three Boursa indices returned to meet once again in the red zone, affected by the increased selling operations that included a wide range of leading and small-cap stocks together, which came in parallel with the increased trading rates of volume or value, where the number of traded stocks grew by 36.73%, and the cash liquidity recorded an increase of 37.20%, compared to the previous session.

Moreover, last week witnessed trading of around 136 stock out of 176 listed stock in the Market, where the prices of 58 stock dropped against prices of 66 increased, with 52 stock remained at no change.

Sectors’ Indices

Five of Boursa Kuwait’s sectors ended last week in the green zone, and six recorded declines, whereas the Health Care sector’s index closed with no change from the week before. Last week’s highest gainer was the Technology sector, achieving 7.26% growth rate as its index closed at 1,071.73 points. Whereas, in the second place, the Basic Material sector’s index closed at 1,048.06 points recording 3.01% increase. The Oil & Gas sector came in third, as its index achieved 1.68% growth, ending the week at 990.73 points.

On the other hand, the Industrial sector headed the losers list as its index declined by 0.73% to end the week’s activity at 974.16 points. The Consumer Services sector was second on the losers’ list, which index declined by 0.64%, closing at 1,004.53 points, followed by the Real Estate sector, as its index closed at 970.92 points at a loss of 0.60%.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 118.22 million shares changing hands during last week, representing 40.28% of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 20.32% of last week’s total trading volume, with a total of around 59.64 million shares.

On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 17.91 million or 40.91% 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. K.D. 7.29 million representing 16.68% of the total market trading value.

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