Kuwait bourse remains muted last week – Earnings drive blue chips higher
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The KSE Index remained muted to close at 5,770.78 down by 4.58 points as it was the only index to close in negative. The KSX15 which constitutes the market blue chips was up by 5.47 points to close at 929.77 an indication of gains reported in the souk blue chips which we believe is primarily driven by key earnings announcements. For instance; Kuwait Projects Co — KIPCO declared its 9M 2015 earnings wherein it reported 17.02 percent gains.
The Weekly volumes stood at 755.08 million shares compared to 780.60 million shares in previous week a decline of 3.3 percent. Among the major contributors like Financial Services Sector (contributing 31.6 percent) reported 238.58 million shares of trading compared to 175.17 million shares in the previous week, while Real Estate Sector (contributing 29.8 percent) witnessed 225.00 million shares of trading a decline of 17.66 percent.
The overall Market Cap was up marginally by 0.6 percent as it stood at KD 26.67 billion. National Bank of Kuwait — NBK (Mcap — KD 4.18 billion) saw its market cap increase 1.02 percent, while Mobile Telecommunications Co — Zain (Mcap — KD 1.57 billion) saw its market cap plunge by 2.73 percent during the week
However; counters like Kuwait Projects Co — KIPCO (Mcap — KD 884.1 million) recorded 5.26 percent gains in market cap which we believe is backed by robust earnings. KIPCO reported KD 37.24 million in earnings for the 9 month ending September 2015 an increase of 17.02 percent compared to same period last year. Further; counters like Mabanee Co (Mcap — KD 756.15 million) as the it reported flat earnings of KD 36.6 million for 9 month period, however the counter witnessed a rise of 2.2 percent in its market cap.
On the total market breadth, of the 57 Islamic Companies, 22 advanced while 23 declined during the week.
The Islamic universe market cap was up by 0.70 percent as it closed at KD 6.94 billion, as universe heavyweight Kuwait Finance House — KFH (Mcap — KD 2.71 billion) saw its market cap go up 1.79 percent. Further, Boubyan Bank (Mcap — KD 887.20 million) was down by 1.15 percent; Kuwait International Bank — KIB (Mcap — KD 238.58 million) closed in negative despite the bank recording a healthy growth of 18.09 percent in 9M2015 earnings; the Islamic lender reported KD 11.75 million net profits.
By KFH Capital
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