Random buying operations limit weekly growth

Bayan Weekly Market Report

KUWAIT: Boursa Kuwait ended last week with mixed performance. The Price Index closed at 6,408.01 points, down by 0.09 percent from the week before closing, the Weighted Index increased by 0.16 percent after closing at 401.42 points, whereas the KSX-15 Index closed at 914.87 points up by 0.25 percent. Furthermore, the week’s average daily turnover decreased by 19.45 percent, compared to the preceding week, reaching KD 7.94 million, whereas trading volume average was 59.91 million shares, recording a decrease of 7.14 percent.

The Weighted and KSX-15 indices were able to record limited weekly growth due to the random purchasing operations executed on the leading and heavy stocks, while the Price Index went against the current and ended the week’s trading with limited loss affected by the profit collection operations that were present during most of the daily sessions of the week, and concentrated on the small-cap stocks, especially the ones that recorded different increases during the previous weeks. The Boursa witnessed such performance amid a drop in the trading indicators compared to the previous week, whereas the total trading value decreased by 19.45 percent reaching KD 39.72 million, and the total traded volume reached by the end of the week around 299.55 million share, down by 7.14 percent compared to the previous week.

In addition, the three market indices initiated the first session of the week with mixed decreases, especially the Price Index which dropped by more than 1 percent due to the selling pressures and speculations that concentrated on the small-cap stocks, while the leading stocks witnessed selling for profit operations, which pushed the Weighted and KSX-15 indices to record some losses. On the next session, the three Boursa indices witnessed mixed closings, as the Price Index was able to realize some increase supported by the last minutes trading activity which witnessed random purchasing operations on a limited number of stocks, while the Weighted and KSX-15 indices continued recording losses for the second consecutive session, affected by the continued profit collection operations that included some heavy stocks.

On the mid-week session, the market indices continued its fluctuation, whereas the Price and Weighted indices were able to realize increases as a result to the limited purchasing operations on some small and mid-cap stocks, while KSX-15 dropped slightly due to the continued profit collection operations on some operational stocks. Such performance came amid a noticeable growth in trading activity on both levels the cash liquidity or the traded volume, whereas the trading value increased by 46 percent and the volume grew by 46.68 percent.

Moreover, the Boursa indices were able to return to meet in the green zone on Wednesday’s session, in light of the purchasing operations on both the leading and small-cap stocks, amid a decreased cash liquidity levels to reach around KD 8 million, after it recorded a drop of 14 percent approximately. On the end of week session, the Boursa continued recording grouped gains for its three indices for the second consecutive session, amid a noticeable growth in the trading levels, as the value broke the K.D. 10 million level, after recording an increase of 41.73 percent, while the volume grew by 80.33 percent after it reached 90.19 million share.

By the end of the week, the Boursa recorded market losses of about KD 20 million, as the market cap for the total listed stocks in the Regular Market by the end of last week reached KD 26.94 billion down by 0.07 percent from its value at the previous week, where it was then KD 26.96 billion. (Note: The market cap 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 week recording 11.48 percent annual gain compared to its closing in 2016, while the Weighted Index increased by 5.61 percent, and the KSX-15 recorded 3.37 percent growth.

Sectors’ indices
Six of Boursa Kuwait’s sectors ended last week in the green zone, five 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 7.01 percent growth rate as its index closed at 1,106.03 points. Whereas, in the second place, the Real Estate sector’s index closed at 933.11 points recording 3.87 percent increase. The Telecommunications sector came in third as its index achieved 2.77 percent growth, ending the week at 558.38 points.

On the other hand, the Technology sector headed the losers list as its index declined by 4.93 percent to end the week’s activity at 478.55 points. The Industrial sector was second on the losers’ list, which index declined by 4.16 percent, closing at 1,839.39 points, followed by the Consumer Services sector, as its index closed at 901.13 points at a loss 3.12 percent.

Sectors’ activity
The Financial Services sector dominated a total trade volume of around 90.64 million shares changing hands during last week, representing 30.26 percent of the total market trading volume. The Banks sector was second in terms of trading volume as the sector’s traded shares were 29.27 percent of last week’s total trading volume, with a total of around 87.67 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 16.10 million or 40.52 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 6.91 million representing 17.39 percent of the total market trading value. — Prepared by Studies & Research Department – Bayan Investment Co.