KUWAIT, May 29: Kuwait Stock Exchange (KSE) registered a significant loss in the past week that wiped-out all of this year’s recorded gains, and caused it to dip below 2009s closing level. The market, however, stabilized in the last two days of the week, and was able to register some gains that lessened its weekly loss. Trading indicators, on the other hand, maintained levels similar to those of the previous week, as average daily turnover during last week grew by 4.19%, compared to previous week’s average, to reach KD 35.99 million, whereas trading volume average amounted to 196.78 million shares, at a decrease of 3.61%.
Significant weakness in purchase activities dominated last week’s overall state of the market, due to uncertainties surrounding KSE’s current conditions. Accordingly, retreats were the main characteristic of the market’s activity since day one. Declines intensified in the middle of the week as a result of strong selling pressures that were mainly caused by lack of internal supports factors, which in turn coincided with sharp losses in international and regional stock markets, in addition to the decrease in oil prices.
By the end of the week, the price index closed at 6,810.3 points, down by 3.58% from the week before closing, whereas the weighted index registered a 3.64% weekly loss after closing at 412.66 points. And as a result of last week’s incurred losses, price index decreased by 2.78% compared to previous year’s closing level, while weighted index’s year-to-date gains were reduced to 6.98%.
Sectors’ Indices
All of KSE’s sectors ended last week in the red zone. Last week’s biggest loser was the Investment sector, as its index declined by 4.70% to end the week’s activity at 5,168.7 points. Whereas, in the second place, the Non-Kuwaiti companies sector’s index closed at 6,863.1 points recording 4.32% decrease.
The Industry sector came in third, as its index closed at 5,313.7 points at a loss of 4.10%. The Real Estate sector was the least declining as its index closed at 2,514.0 points with a 2.36% decrease.
Sectors’ Activity
The Non-Kuwaiti companies sector dominated total trade volume during last week with 252.58 million shares changing hands, representing 25.67% of the total market trading volume. The Investment sector was second in terms trading volume as the sector’s traded shares were 25.45% of last week’s total trading volume, with a total of 250.38 million shares.
On the other hand, the Services sector’s stocks where the highest traded in terms of value; with a turnover of KD 56.06 million or 31.15% of last week’s total market trading value. The Banks sector took the second place as the sector’s last week turnover of KD 49.10 million represented 27.29% of the total market trading value.
Market Capitalization
KSE total market capitalization declined by 3.66% during last week to reach KD 31.30 billion, as all of KSE’s sectors recorded a decrease in their respective market capitalization. The Investment sector was the most declining as its total market capitalization reached KD 2.87 billion, decreasing by 4.96%. The Industry sector was the second in terms of recorded decline with 4.72% decrease after the total value of its listed companies reached KD 2.66 billion. The third place was for the Non-Kuwaiti companies sector, which total market capitalization reached KD 3.01 billion by the end of the week, recording a decline of 4.52%. The Insurance sector was the least declining with 2.87% recorded decrease after its market capitalization amounted to KD 283.85 million.