Boursa Kuwait rallies on positive sentiment

KUWAIT: Boursa Kuwait ended last week in the green zone. The Price Index closed at 6,885.84 points, up by 0.60 percent from the week before closing, the Weighted Index increased by 1.16 percent after closing at 424.83 points, whereas the KSX-15 Index closed at 967.76 points up by 0.75 percent. Furthermore, last week’s average daily turnover increased by 36.47 percent, compared to the preceding week, reaching K.D 18.58 million, whereas trading volume average was 84.99 million shares, recording an increase of 20.23 percent.

The Boursa was able to end last week’s trading with good gains to its three indices, benefiting from the purchasing power and the collection operations executed on many stocks being traded over during the week, especially the leading and heavy stocks that disclosed positive results for the second quarter period of the current year. Such performance came amid a relatively increased trading activity in the market, especially the cash liquidity, which reached its highest levels in the month during one daily sessions of the last week; and despite the increases realized by the market indices during the last week, the profit collection operations were not absent from affecting its performance during some sessions, where such operations push back some stocks, and limited the others’ gains, however, it was not enough to push the Boursa indices to the red zone on the weekly level.

Also, the Boursa gained around KD 620 million in the last five sessions, whereas the total value of the listed companies in the Boursa (primary market) reached by the end of last week to KD 28.37 billion, against KD 27.75 billion at the end of the previous week, and up by 2.23 percent. On an annual level, the market cap gains reached 11.66 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 using the average number of outstanding shares as per the latest available financial statements).

As per the daily trading activity, Sunday session witnessed an increase to the three indices, especially the Weighted and KSX-15 indices, that benefited from the active trading and the random purchasing operations that included some leading stocks, while the Price Index realized a limited increase due to the speculative operations that concentrated on some small-cap stocks being traded below 100 Fils. Moreover, the Boursa Kuwait Indices continued recording growth in the second session, supported by the strong collection action that included some leading stocks, especially the stock of (Zain) company, which lead the market to the green zone after the agreement of selling treasury shares to (Omantel) company, in addition to the quick speculative operations that the small-cap stocks were subject to.

On the mid-week session, the market made a stop at the profit collection station, which pushed the three indices to record mixed losses and end the session in the red zone, and came after the good performance witnessed by the Boursa in the previous sessions and the increase of many stocks. Such losses came despite the noticeable growth in the trading activity during the session, especially the cash liquidity, which increased by 38.67 percent to reach KD 23.78 million, its highest level during the month of August.

Wednesday’s session witnessed mixed closings for the three indices, as the Price Index succeeded in returning to the green zone once again, supported by the speculative trading that included some small-cap stocks, while the Weighted and KSX-15 indices continued its decline, affected by the continued profit collection operations on the leading stocks. On Thursday’s session, the market indices continued its fluctuation, however with changing positions, as the Weighted and KSX-15 were able to end the last session of the week in the green zone, supported by the random purchasing operations that concentrated on a number of small and mid-cap stocks, while KSX-15 Index declined as a result to the profit collection operations executed on the leading stocks, the components of the Index.

For the annual performance, the Price Index ended last week recording 19.79 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 11.77 percent, and the KSX-15 recorded 9.35 percent growth.

Sectors’ Indices
Seven of Boursa Kuwait’s sectors ended last week in the green zone, four recorded declines, whereas the Health Care sector’s index closed with no change from the week before. Last week’s highest gainer was the Insurance sector, achieving 5.15 percent growth rate as its index closed at 1,124.67 points. Whereas, in the second place, the Telecommunications sector’s index closed at 616.76 points recording 1.94 percent increase. The Financial Services sector came in third as its index achieved 1.14 percent growth, ending the week at 698.28 points.

On the other hand, The Technology sector headed the losers list as its index declined 4.51 percent to end the week’s activity at 624.70 points. The Oil & Gas sector was second on the losers’ list, which index declined by 3.23 percent, closing 1,029.26 points, followed by the Consumer Goods sector, as its index closed at 1,008.55 points at a loss of 1.46 percent.

Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 164.04 million shares changing hands during last week, representing 38.60 percent of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 22.16 percent of last week’s total trading volume, with a total of around 94.15 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 37.50 million or 40.37 percent of last week’s total market trading value. The Telecommunications sector took the second place as the sector’s last week turnover was approx. KD 23.05 million representing 24.82 percent of the total market trading value. –Prepared by: Studies & Research Department – Bayan Investment Co.

BAYAN WEEKLY MARKET REPORT

This article was published on 19/08/2017