Kuwait bourse ends in red; market cap dips 1.04%

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Kuwait stock market indices ended the week with mixed losses affected by the profit collection operations executed on most of the traded stocks, especially the leading ones, which realized gains in the previous week, in addition to the continued presence of the speculative operations that are concentrating mainly on the small-cap stocks, especially the ones of lower market values than its par and book values and being traded under 100 Fils.

The market witnessed such performance in light of the growing trading activity during most of the daily sessions of the week, especially the value, which recorded a noticeable increase compared to the previous week’s trading, where the average market liquidity during the week reached KD 12.03 million, increasing by 42.44% from the average trading value in a week earlier.  Also, the market is still watching for the listed companies’ results for the 9 months of 2016, which is expected to be disclosed in the coming days.

As per the daily trading activity, the stock market initiated the first session of the last week with a big and steep drop for all its indices, especially the Weighted and KSX-15, which recorded its losses in light of the selling pressures and the profit collection operations executed on many leading stocks, especially the Banks sector.  The market continued its negative performance on the second session and the three indices continued recording losses, however at a slower pace from the previous session, amid a continued active selling pressures with concentration on the leading stocks of increased prices in the previous weeks.

On Wednesday’s session, the market was able to return once again to the green zone and the three indices were able to realize growth amid a partial increase in the trading levels, in light of the return of the random purchasing operations on the leading and operational stocks, in addition to the speculative trading witnessed by some small-cap stocks. Furthermore, the market could not keep its previously recorded gains by the end of the week, as it witnessed a return to the red zone once again affected by the strong profit collection operations that most of the listed stocks were subject to, which negatively reflected on the three indices’ performance to record noticeable losses by the end of the session, especially the Price Index, which increased its weekly losses significantly; but despite such drop, the trading activity recorded a noticeable increase in the same session, particularly the value, which reached KD 18.16 million by the end of the session, its highest level since around last June.

By the end of the last week, the capital market value for the listed companies in the official market reached KD 23.39 billion, down by 1.04% compared to its level in a week earlier, where it reached then KD 23.64 billion; however on an annual level, the decline in the market cap for the listed companies increased to reach 7.42% from its value at end of 2015, where it reached then KD 25.27 billion.

As far as KSE annual performance, the price index ended last week recording 5.25% annual loss compared to its closing in 2015, while the weighted index decreased by 8.75%, and the KSX-15 recorded 10.03% loss.

Sectors’ Indices

All of KSE’s sectors ended last week in the red zone except for one sector. The Financial Services sector headed the losers list as its index declined by 2.54% to end the week’s activity at 548.32 points. The Insurance sector was second on the losers’ list, which index declined by 2%, closing at 955.73 points, followed by the Oil & Gas sector, as its index closed at 742.19 points at a loss of 1.95%. The Health Care sector was the least declining as its index closed at 1,065.37 points with a 0.39% decrease.

On the other hand, the Technology sector was last week only gainer, which index grew by 0.79%, closing at 975.69 points.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 86.65 million shares changing hands during last week, representing 27.61% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 23.33% of last week’s total trading volume, with a total of around 73.23 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 13.80 million or 28.69% of last week’s total market trading value. The Industrial sector took the second place as the sector’s last week turnover was approx KD 10.87 million representing 22.60% of the total market trading value.

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