Boursa Kuwait recovers after weeks of lackluster trading

Trading activity picks up towards year-end

KUWAIT: Boursa Kuwait ended last week in the green zone. The Price Index closed at 6,413.72 points, up by 1.30 percent from the week before closing, the Weighted Index increased by 0.25 percent after closing at 400.78 points, whereas the KSX-15 Index closed at 912.58 points up by 0.28 percent. Furthermore, the week’s average daily turnover increased by 21.57 percent, compared to the preceding week, reaching KD 9.86 million, whereas trading volume average was 64.52 million shares, recording an increase of 17.22 percent.

The trading activity during the last week showed that the market witnessed a strong fluctuated performance, however was able to realize a weekly growth for its three indices and was able to continue recording gains for the second consecutive week, supported by the random purchasing operations that included some heavy stocks, in addition to the quick speculations that concentrated on the small-cap and idle stocks, which came in parallel with the improved trading levels of the value and the volume. The market was able to increase despite the profit collection operations witnessed during the week’s sessions, where the three indices tended to decrease during some sessions, but the market was able to end the week in the green zone.

The Boursa recorded during the last five sessions market gains over KD 140 million, as the market capitalization for the total listed companies in the Regular Market reached by the end of the week KD 26.96 billion, up by 0.54 percent compared to its value in a week earlier, where it was KD 26.82 billion. On an annual level, the market cap gains reached 6.11 percent compared to its value at end of last year, where it reached then KD 25.41 billion. (Note: The market cap for the listed companies in the Regular Market is calculated based on the average number of the outstanding shares as per latest available official financial statements).

On the other hand, last week witnessed an increase of 51 stock out of 157 listed stock in the Regular Market, compared to a week earlier, while 81 stock dropped, and 25 stock remained unchanged.

As far as the daily trading activity, the market initiated the first session of the week with mixed closings for its three indices, whereas the Price and Weighted indices were able to increase supported by the purchasing operations executed on some small and mid-cap stocks, while the profit collection operations that concentrated on a limited number of heavy stocks contributed to the negative impact on the KSX-15 Index which ended the session in the red zone. On Monday’s and Tuesday’s sessions, the Boursa indices continued its fluctuation for the three indices, as the Price Index continued in recording gains supported by the quick speculative operations that concentrated on the small-cap stocks, in addition to the auction dealings that witnessed purchasing operations on the idol stocks, while the Weighted and KSX-15 indices decreased by the end of the session under the influence of the continued profit collection operations of some leading stocks.

On Wednesday’s session, the fluctuation continued to control over the three indices where positions switched as the traders changed preferences, whereas the Price Index fell in the red zone affected by the profit collection operations that included some small-cap stocks that witnessed mixed increases in the previous sessions, while the Weighted and KSX-15 indices were able to detour upward to be able to compensate a part of its previous losses supported by the return of the purchasing operations on the leading and heavy stocks. Thursday’s session witnessed a closing of the three indices in the green zone for the first time in the week, as a result to the collection operations that included many listed stocks of both leading or small-cap ones, which enabled the Weighted and KSX-15 to compensate its previous losses and pass the red zone on the weekly level, and enhance the Price Index gains as well.

For the annual performance, the Price Index ended last week recording 11.58 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 5.44 percent, and the KSX-15 recorded 3.11 percent growth.

Sectors’ Indices
Eight of Boursa Kuwait’s sectors ended last week in the green zone, three recorded declines, whereas the Health Care sector’s index closed with no change from the week before. Last week’s highest gainer was the Industrial sector, achieving 4.68 percent growth rate as its index closed at 1,919.19 points. Whereas, in the second place, the Real Estate sector’s index closed at 898.37 points recording 1.77 percent increase. The Technology sector came in third as its index achieved 1.14 percent growth, ending the week at 503.34 points.
On the other hand, the Consumer Goods sector headed the losers list as its index declined by 2.97 percent to end the week’s activity at 827.24 points. The Financial Services sector was second on the losers’ list, which index declined by 1.98 percent, closing at 612.96 points, followed by the Telecommunications sector, as its index closed at 543.31 points at a loss of 0.45 percent.

Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 116.03 million shares changing hands during last week, representing 35.97 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 22.37 percent of last week’s total trading volume, with a total of around 72.15 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 20.56 million or 41.68 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 11.73 million representing 23.79 percent of the total market trading value. – Prepared by: Studies & Research Department – Bayan Investment Co.

This article was published on 23/12/2017