Kuwait stock indices close on mixed note

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Kuwait Stock Exchange (KSE) ended last week with mixed performance. The Price Index closed at 5,398.39 points, down by 0.14% from the week before closing, the Weighted Index increased by 0.23 % after closing at 351.87 points, whereas the KSX-15 Index closed at 814.10 points up by 0.21%. Furthermore, last week’s average daily turnover increased by 62.06%, compared to the preceding week, reaching K.D 8.44 million, whereas trading volume average was 71.72 million shares, recording an increase of 31.77%.

The three stock market indices closed mixed last week, where the Weighted and KSX-15 indices grew, while the Price Index could not increase to end the week in the red zone, as such performance came amid severe fluctuation between up and down in light of the continued control of the speculation over the trading behavior in the market, and mainly concentrated on the small-cap stocks.  The market did react positively during the last week with the news spread and developments of Americana company deal, which enhanced the traded liquidity that recorded a noticeable growth during most of the daily sessions of the week.  In addition, the market witnessed such performance in light of the continued watch by the investors to the listed companies results for the 9 months 2016, which are expected to be disclosed in the coming few weeks.

Also, the profit collection operations were not absent from influencing the trading direction in the market during last week, where the three indices declined in some daily sessions of the week affected by such operations, which pushed the Price Index to end the week in the red zone, and limited the Weighted and KSX-15 indices’ gains.

As per the daily trading activity, the market initiated the first session of the week with an increase to all its indices, especially the Weighted and KSX-15 indices, which realized its gains in light of the active trading witnessed by the leading stocks, especially after the same stocks’ prices dropped steeply and reached tempting purchasing levels; however the second session witnessed strong profit collection operations that included many leading and small-cap stocks, which pushed the three indices to close in the red zone, amid a noticeable increase in the trading activity during the session, especially the liquidity, which recorded an increase of more than 85%.

The market returned in the mid-week session to increase once again, in light of the speculative trading that included some small-cap listed stocks, especially the stocks of prices less than its par or book value.  The market realized such increase despite the large drop in the trading activity, especially the value which declined by about 30%.  On Wednesday and Thursday’s sessions, the three indices dropped in light of the increased selling pressures and the profit collection operations on the stocks that realized good increases in the previous session, which lightened the weekly gains of the Weighted and KSX-15 indices, and caused the Price Index to close below the previous week closing.

By the end of last week, the market capitalization reached K.D. 23.64 billion, up by 0.26% compared to its level in a week earlier, where it was K.D. 23.58 billion; on an annual level, the decline in the market cap of the listed companies in the market contracted to reach 45% from its value at end of 2015, where it reached then K.D. 25.27 billion.

As far as KSE annual performance, the price index ended last week recording 3.86% annual loss compared to its closing in 2015, while the weighted index decreased by 7.82%, and the KSX-15 recorded 9.59% loss.

Sectors’ Indices

Eight of KSE’s sectors ended last week in the red zone, while the other four recorded increases. The Telecommunications sector headed the losers list as its index declined by 1.84% to end the week’s activity at 580.92 points. The Oil & Gas sector was second on the losers’ list, which index declined by 1.48%, closing at 756.96 points, followed by the Insurance sector, as its index closed at 975.19 points at a loss of 1.24%.

On the other hand, last week’s highest gainer was the Basic Materials sector, achieving 1.68% growth rate as its index closed at 926.40 points. Whereas, in the second place, the Consumer Services sector’s index closed at 904.26 points recording 0.74% increase. followed by the Industrial sector which closed at 1,154.56 points recording 0.48% increase.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 134.65 million shares changing hands during last week, representing 37.55% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 27.34% of last week’s total trading volume, with a total of around 98.05 million shares.

On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 14.72 million or 34.87% 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. K.D 6.63 million representing 15.70% of the total market trading value.

For further details, please visit our web site: www.bayaninvest.com

 

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