Kuwait equities upbeat before Eid

BAYAN WEEKLY MARKET REPORT

Kuwait Stock Exchange (KSE) ended the first week of September in the green zone. The Price Index closed at 5,429.41 points, up by 0.37 percent from the week before closing, the Weighted Index increased by 1.06 percent after closing at 350.67 points, whereas the KSX-15 Index closed at 815.58 points up by 1.28 percent. Furthermore, the week’s average daily turnover decreased by 4.15 percent, compared to the preceding week, reaching KD 5.06 million, whereas trading volume average was 47.97 million shares, recording a decrease of 7.57 percent.

In light of a trading activity over controlled by variation and noticeable fluctuation, and despite the declines recorded by the market at the beginning of the last week prior to the holiday, the three stock market indices were able to compensate its losses and could end the same week’s trading in the green zone, as a result to the purchasing and collection operations executed on the leading stocks, the most traded on, and it was apparent on the performance of the Weighted and KSX-15 indices, the most increasing ones during the week compared to its opponents, the Price Index, which benefited in turn from the random purchasing and the quick speculative operations that included some small-cap listed stocks.

As per the daily trading activity, the market opened the week’s trading with a drop that lasted all Sunday’s session, amid a limited growth in the liquidity level, due to the selling pressures that included a wide range of stocks, especially in the Telecommunication and Consumer Goods sectors, the most losing ones by the end of the session. On Monday’s session, the red colour continued to be in control amid an increased selling operations and quick speculation on most of the stocks that were traded on during the session, especially the small-cap ones.

On the mid-week session, the market was able to reverse its direction to the upward and its three indices were able to realize a grouped increase, to compensate a part of its previous losses, supported by the random purchasing operations that included many stocks of different sectors, especially in Telecommunication, the most increasing sector; the market realized such gains amid a noticeable growth to the three trading indicators, especially the value, which reached by the end of the session to KD 5.77 million, up by 71.69 percent compared to the previous session.

Also, the market continued on Wednesday’s session its increase for the three indices supported by the purchasing powers that included many stocks of different sectors, especially the leading stocks that had a significant role in realizing such gains. On the end of week session, the market continued in realizing gains for the three indices, especially the Price Index that received support by the random purchasing operations and the quick speculations that concentrated on the small-cap stocks , in light of a relatively increased levels of the trading indicators.

By the end of the last operating week prior to the holiday, the market cap reached KD23.55 billion, up by 1.07 percent compared to its level in a week earlier, where it reached then KD 23.30 billion. On an annual level, the decline in the market cap for the listed companies in KSE contracted to reach 6.79 percent from its value at end of 2015, where it reached then KD 25.27 billion.

As far as KSE annual performance, the price index ended the first week of the current month recording 3.31 percent annual loss compared to its closing in 2015, while the weighted index decreased by 8.13 percent, and the KSX-15 recorded 9.42 percent loss.

Sectors’ Indices

Seven of KSE’s sectors ended the last week prior to the Eid holiday in the red zone, while the other five recorded increases. The Technology sector headed the losers list as its index declined by 2.82 percent to end the week’s activity at 943.04 points. The Consumer Goods sector was second on the losers’ list, which index declined by 0.89 percent, closing at 1,143.53 points, followed by the Health Care sector, as its index closed at 1,056.41 points at a loss of 0.68 percent. The Insurance sector was the least declining as its index closed at 998.18 points with a 0.01 percent decrease.

On the other hand, the week’s highest gainer was the Financial Services sector, achieving 2.25 percent growth rate as its index closed at 569.94 points. Whereas, in the second place, the Banks sector’s index closed at 792.68 points recording 1.44 percent increase. Followed by Oil & Gas sector’s index closed at 773.88 points recording 0.76 percent increase.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 97.56 million shares changing hands during the same week, representing 40.68 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 21.41 percent of the week’s total trading volume, with a total of around 51.34 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 6.13 million or 24.25 percent of the week’s total market trading value. The Financial Services sector took the second place as the sector’s turnover at end of the same week was approx. KD 4.96 million representing 19.61 percent of the total market trading value.

— Prepared by the Studies & Research Department, Bayan Investment Co.