Boursa Kuwait equities close November on a bearish note

Monthly turnover drops 22.97 %

KUWAIT: Boursa Kuwait ended November in the red zone. The Price Index closed at 6,196.50 points, down by 4.87 percent compared to the closings of the month before, the Weighted Index decreased by 5.03 percent after closing at 398.78 points, whereas the KSX-15 Index closed at 908.54 points decreasing by 6.12 percent. Furthermore, last month’s average turnover decreased by 22.97 percent, compared to the preceding month, reaching KD 15.60 million, whereas trading volume average was 80.05 million shares, recording a decrease of 25.72 percent.

The losses witnessed by the three Boursa indices during the last month came as a result to the selling pressures and included many stocks of all sectors, headed by the Consumer Goods sector, which lost more than 10 percent compared to the month of October. In addition, the market was subject to some negative factors during the last month, that pushed it to record such losses, headed by the political volatility that the region went through, especially in the first half of the month.

Also, the market was affected by the refrain of some traders from trading due to the absence of positive motivators and lack of investment opportunities in the market, especially in light of the poor local economic condition in general and not solving the noticeable obstacles that the national economy is suffering from since many years; whereas the psychological factor and the low confidence level of the investors played a great role in the recorded declines, especially in light of a weak investment environment in the country and the decrease of most local economic indicators, and absence of internal positive motivators, which has been the ongoing factors being affecting the negative performance of the market.

Moreover, the losses recorded by the Boursa Kuwait indices during the month of November were considered the highest on a monthly level since the beginning of the current year, as the Price Index recorded by the end of the month losses of 4.87 percent after it closed at 6,196.50 point, while the Weighted Index decrease reached 5.03 percent closing at 398.78 point, and the KSX-15 Index ended last month’s trading at 908.54 point, recording a loss of 6.12 percent compared to last October’s closings.

Boursa Kuwait lost during the last month around KD 1.40 billion of its market capitalization, as it reached by the end of the month KD 26.67 billion, down by 4.97 percent of its October level, where it was KD 28.07 billion, to contract by such its gains since the beginning of the year and reach 4.98 percent, compared to its value at end of 2016, where it was KD 25.41 billion. (Note: The market capitalization 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).

For the annual performance, the Price Index ended last month recording 7.80 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 4.92 percent, and the KSX-15 recorded 2.66 percent growth.

Sectors’ Indices
All of Boursa Kuwait’s sectors ended last month in the red zone, except the Health Care sector’s index which closed with no change from the previous month. The Consumer Goods sector headed the losers list as its index declined by 10.16 percent to end the week’s activity at 877.26 points. The Technology sector was second on the losers’ list, which index declined by 9.93 percent, closing at 498.90 points, followed by the Insurance sector, as its index closed at 1,003.28 points at a loss of 6.90 percent. The Consumer Services sector was the least declining as its index closed at 919.51 points with a 1.42 percent decrease.

Sectors’ activity
The Financial Services sector dominated a total trade volume during the last month of 636.99 million shares changing hands, representing 37.89 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 percent of last month’s total trading volume, with a total of 403.51 million shares.
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of KD 147.99 million or 45.17 percent of last month’s total market trading value. The Financial Services sector took the second place as the sector’s last month turnover of KD 57.53 million representing 17.56 percent of the total market trading value. – Prepared by the Studies & Research Department
Bayan Investment Co.

BAYAN MONTHLY MARKET REPORT

This article was published on 03/12/2017