Boursa Kuwait faces selling pressure

Boursa Kuwait ended September with mixed performance. The Price Index closed at 6,679.73points, down by 3.08 percent compared to the closings of the month before, the Weighted Index increased by 0.03 percent after closing at 430.70 points, whereas the KSX-15 Index closed at 997.37 points increasing by 1.27 percent. Furthermore, last month’s average turnover increased by 72.14 percent, compared to the preceding month, reaching KD 25.07 million, whereas trading volume average was 122.03 million shares, recording increase of 54.89 percent.

Boursa Kuwait three indices witnessed mixed closings by the end of the month, whereas the Weighted and KSX-15 indices continued realizing gains for the third consecutive month as a result to the purchasing trend that the leading and operational stocks took a large stake of, while the Price Index could not succeed in realizing a monthly increase affected by the profit collection operations that increased in the second half of the month, and included many listed stocks of leading and small-cap ones, which limited the monthly gains of the Weighted and KSX-15 indices, and caused the Price Index to lose all its gains realized in the first half of the month and pushed it to end the trading in the red zone.
In addition, the third quarter period of 2017 has ended by the end of the month, which means entering the market into a state of watch for the listed companies’ results for the same period, especially the leading companies of stocks that witnessed volatile activity during the last three months, particularly stocks of Banks sector, the most active stocks during the previous period.

Moreover, the market capitalization gains for Boursa Kuwait during the last month reached around KD 108 million, as the total value of the listed stocks in the Primary Market by the end of September reached KD 28.87 billion, against KD 28.77 billion at end of August, up by 0.38 percent. On an annual level, the market cap gains for the Boursa Kuwait during the nine months period of the current year reached KD 3.47 billion, or 13.64 percent compared to its value at end of 2016, where it reached then KD 25.41 billion. (Note: the market cap for the listed companies in the Primary Market is calculated based on the average number of outstanding shares as per the latest available financial statements).
For the annual performance, the Price Index ended last month recording 16.21 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 13.32 percent, and the KSX-15 recorded 12.69 percent growth.

Sectors’ Indices
Ten of Boursa Kuwait’s sectors ended last month in the red zone, while one recorded increase, On the other hand, the Health Care sector’s index closed with no change from the week before. The Consumer Services sector headed the losers list as its index declined by 12.16 percent to end the week’s activity at 933.04 points. The Technology sector was second on the losers’ list, which index declined by 5.56 percent, closing at 573.26 points, followed by the Insurance sector, as its index closed at 1,116.28 points at a loss of 4.93 percent. The Basic Materials sector was the least declining as its index closed at 1,310.06 points with a 0.05 percent decrease. On the other hand, last month’s only gainer was the Financial Services sector, achieving 1.31 percent growth rate as its index closed at 701.06 points.

Sectors’ Activity
The Financial Services sector dominated a total trade volume during the last month of 761.68 million shares changing hands, representing 36.72 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 24.52 percent of last month’s total trading volume, with a total of 508.70 million shares
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of KD 185.68 million or 43.56 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 74.82 million representing 17.55 percent of the total market trading value. – Prepared by the Studies & Research Department

Boursa Kuwait ended September with mixed performance. The Price Index closed at 6,679.73points, down by 3.08 percent compared to the closings of the month before, the Weighted Index increased by 0.03 percent after closing at 430.70 points, whereas the KSX-15 Index closed at 997.37 points increasing by 1.27 percent. Furthermore, last month’s average turnover increased by 72.14 percent, compared to the preceding month, reaching KD 25.07 million, whereas trading volume average was 122.03 million shares, recording increase of 54.89 percent.
Boursa Kuwait three indices witnessed mixed closings by the end of the month, whereas the Weighted and KSX-15 indices continued realizing gains for the third consecutive month as a result to the purchasing trend that the leading and operational stocks took a large stake of, while the Price Index could not succeed in realizing a monthly increase affected by the profit collection operations that increased in the second half of the month, and included many listed stocks of leading and small-cap ones, which limited the monthly gains of the Weighted and KSX-15 indices, and caused the Price Index to lose all its gains realized in the first half of the month and pushed it to end the trading in the red zone.
In addition, the third quarter period of 2017 has ended by the end of the month, which means entering the market into a state of watch for the listed companies’ results for the same period, especially the leading companies of stocks that witnessed volatile activity during the last three months, particularly stocks of Banks sector, the most active stocks during the previous period.
Moreover, the market capitalization gains for Boursa Kuwait during the last month reached around KD 108 million, as the total value of the listed stocks in the Primary Market by the end of September reached KD 28.87 billion, against KD 28.77 billion at end of August, up by 0.38 percent. On an annual level, the market cap gains for the Boursa Kuwait during the nine months period of the current year reached KD 3.47 billion, or 13.64 percent compared to its value at end of 2016, where it reached then KD 25.41 billion. (Note: the market cap for the listed companies in the Primary Market is calculated based on the average number of outstanding shares as per the latest available financial statements).
For the annual performance, the Price Index ended last month recording 16.21 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 13.32 percent, and the KSX-15 recorded 12.69 percent growth.
Sectors’ Indices
Ten of Boursa Kuwait’s sectors ended last month in the red zone, while one recorded increase, On the other hand, the Health Care sector’s index closed with no change from the week before. The Consumer Services sector headed the losers list as its index declined by 12.16 percent to end the week’s activity at 933.04 points. The Technology sector was second on the losers’ list, which index declined by 5.56 percent, closing at 573.26 points, followed by the Insurance sector, as its index closed at 1,116.28 points at a loss of 4.93 percent. The Basic Materials sector was the least declining as its index closed at 1,310.06 points with a 0.05 percent decrease. On the other hand, last month’s only gainer was the Financial Services sector, achieving 1.31 percent growth rate as its index closed at 701.06 points.
Sectors’ Activity
The Financial Services sector dominated a total trade volume during the last month of 761.68 million shares changing hands, representing 36.72 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 24.52 percent of last month’s total trading volume, with a total of 508.70 million shares
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of KD 185.68 million or 43.56 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 74.82 million representing 17.55 percent of the total market trading value. – Prepared by the Studies & Research Department

BAYAN MONTHLY MARKET REPORT

This article was published on 01/10/2017