Kuwait bourse closes week in red zone – Market loses about KD 1.94 billion since beginning of 2016

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Kuwait Stock Market witnessed a decline in the three stock indicators’ performance last week, among a decreased trading activity compared to a week earlier, as some traders exercised profit collection operations, ignoring the positive results disclosed by some listed companies and banks during the week, which negatively affected the indices performance to end the week in the red zone.

By the end of the week, the number of the companies that disclosed its 2015 financial results reached 42 company, realizing around KD 910.84 million, with an increase of 5.46% from the results of the same companies for the same period of 2014.  On the other hand, the market capitalization for the 190 listed companies in the official market reached KD 23.33 billion, declining by KD 365.65 million or 1.54% of its value at a week earlier, where it was KD 23.69 billion. On an annual level, the market has lost about KD 1.94 billion since the beginning of 2016, declining by 7.67%.

As far as the market daily trading activity, the first session of the week witnessed mixed performance for the three indices, whereas the Price Index and KSX-15 Index were able to realize some increase, affected by the positive news of some investment groups, while the Weighted Index decreased slightly as a result to the selling operations executed on some large cap stocks, among a decrease in the trading activity, as the liquidity declined by KD 5 million or about 24%.  On the next session, the fluctuation continued in controlling the market trading activity to close with mixed performance for the three indices, where the Price Index and KSX-15 Index continued its gains, however limited, whilst the Weighted Index declined due to the selling pressures;  also, the Price Index was able to maintain the 5,200 point level, supported by the active trade on most of the sectors and the strong purchasing operations on the low priced stocks, which are expected to announce good financial results for 2015, in addition to some leading stocks, which pushed the cash liquidity to compensate its previous session’s losses.

On Tuesday’s session, the market recorded a grouped decline for the three indices, whereas the Price Index lost 45.48 point to reach 5,163.80 point, as a result to the heavy selling pressures and the profit collection operations that reached many idle stocks, in a restructuring operation, among a noticeable decline in the trading activity.  On Wednesday’s session, the market continued its downward direction, under the effect of the continued strong selling operations and the profit collection operations executed on the leading stocks, especially in the Banks sector, in addition to the speculation operations on the low-priced stocks of previous gains, which caused most of the traded stocks during the session to decline and the three stock market indicators to decrease, among a noticeable drop in the trading activity, especially the volume, which declined by 37.87%.  The market ended the last session of the week with a grouped decline for the three indices on Thursday’s session, affected by the continued selling operations executed on the traded stocks throughout the week, where the Price Index lost 66.81 point.

As far as KSE annual performance, the price index ended last week recording 8.61% annual loss compared to its closing in 2015, while the weighted index decreased by 8.21%, and the KSX-15 recorded 8.14% loss.

Sectors’ Indices

Five of KSE’s sectors ended last week in the green zone, while the other seven recorded declines. Last week’s highest gainer was the Consumer Goods sector, achieving 3.12% growth rate as its index closed at 1,069.30 points. Whereas, in the second place, the Consumer Services sector’s index closed at 965.73 points recording 1.16% increase. The Oil & Gas sector came in third as its index achieved 0.16% growth, ending the week at 765.84 points.

On the other hand, the Telecommunication sector headed the losers list as its index declined by 4.90% to end the week’s activity at 551.46 points. The Banks sector was second on the losers’ list, which index declined by 3.89%, closing at 789.82 points, followed by the Financial Services sector, as its index closed at 523.90 points at a loss of 2.89%.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 301.02 million shares changing hands during last week, representing 42.59% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 28.97% of last week’s total trading volume, with a total of around 204.73 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 24.46 million or 40.73% of last week’s total market trading value. The Financial Services sector took the second place as the sector’s last week turnover was approx KD 11.57 million representing 19.27% of the total market trading value.

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