Kuwait bourse heads south; volume drops

Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,324.05 points, down by 1.32% from the week before closing, the Weighted Index decreased by 1.65% after closing at 356.71 points, whereas the KSX-15 Index closed at 830.91 points down by 1.67%. Furthermore, last week’s average daily turnover increased by 13.93%, compared to the preceding week, reaching KD 11.82 million, whereas trading volume average was 110.24 million shares, recording a decrease of 7.02%.

The stock market took a downward direction last week, and the three indices recorded different losses in light of the selling pressures and profit collections operations that overtook the random purchasing operations which were present during some daily sessions of the week, however were limited, and the selling operations included many traded stocks, amid a mixed performance for the trading indicators compared to a week earlier, whereas the values increased by the end of the week, with a limited decrease in the volumes.

Also many negative factors contributed into the market decline during the last week, headed by the drop in profits of many listed companies for the first quarter of the current year, in addition to the absence of positive motivators that can increase the purchasing traffic.

As per the daily performance of KSE; the market recorded mixed closings to the three indicators on the first day of the week, whereas the Price and Weighted indices declined in parallel with the selling operations witnessed by a group of small-cap stocks, while KSX-15 Index was able to hold and end the session almost without a change.

The market witnessed thereafter a noticeable drop during Monday’s session, as a result to the strong selling operations executed on stocks of different weights. The market returned to fluctuate on the third day, as the Price Index compensated a part of its previous day losses supported by the purchasing operations executed on some small-cap stocks, while the Weighted and KSX-15 indices’ losses increased by the end of the session due to the selling operations that concentrated on the leading stocks. On Wednesday’s session, the Price Index returned to the red zone once again, while the Weighted and KSX-15 indices were able to realize some increase, compensating some of its previous losses.

The market continued its downward direction during the end of week sessions, which increased the three indicators’ losses and was accompanied by a limited decline in the trading activity.

Moreover, the market capitalization reached by the end of last week KD 23.28 billion, declining by 1.23% when compared to its level in a week earlier, as it was K.D. 23.57 billion. On an annual level, the market cap for the listed companies in KSE dropped by 7.86% from its value at end of 2015, where it recorded then KD 25.27 billion.

As far as KSE annual performance, the price index ended last week recording 5.18% annual loss compared to its closing in 2015, while the weighted index decreased by 6.55%, and the KSX-15 recorded 7.72% loss.

Sectors’ Indices

Ten of KSE’s sectors ended last week in the red zone, while the other two recorded increases. The Telecommunications sector headed the losers list as its index declined by 2.63% to end the week’s activity at 597.55 points. The Consumer Services sector was second on the losers’ list, which index declined by 2.21%, closing at 915.66 points, followed by the Financial Services sector, as its index closed at 568.16 points at a loss of 2.13%. The Industrial sector was the least declining as its index closed at 1,032.04 points with a 0.27% decrease.

On the other hand, last week’s highest gainer was the Insurance sector, achieving 1.82% growth rate as its index closed at 1,018.53 points. Whereas, in the second place, the Technology sector’s index closed at 975.23 points recording 0.87% increase.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 155.10 million shares changing hands during last week, representing 28.14% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 23.10% of last week’s total trading volume, with a total of around 127.35 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 25.89 million or 43.80% 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 7.96 million representing 13.46% of the total market trading value.

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