Market indices post heavy losses during week

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The three stock market indicators met in the red zone closing area affected by the continued control of the random selling operations over the trading activity, as it included many stocks that were traded during the week, headed by the leading and operational stocks, which negatively affected all the market indices, especially the Price Index which ended the last week at its lowest level since around year 2004. The market witnessed such performance in a time that a state of watch and cautious is controlling the investors awaiting for the listed companies results for the year 2015. On the other hand, the decline of many previously traded stocks during the last week, lead the market capitalization to lose more than KD 600 million during only four sessions to reach KD 24.66 billion compared to  KD 25.27 billion by the end of a week earlier.

Moreover, the stock market started its first session of the week with a decline to all of the indicators in light of the strong selling pressures that included many large-cap and small-cap stocks, among a mixed daily trading activity variables, whereas the volume increased noticeably by the end of the session, whilst the value recorded limited decrease.  However, the market continued in recording losses for the three indicators in the next session, affected by the selling operations which is considered to be the main characteristic of this period’s trading activity.

On Wednesday’s session, the market witnessed a mixed performance where the Price Index continued its losses for the third consecutive week since the beginning of the new year, whilst the Weighted and KSX-15 indices were able to compensate a small portion of its losses supported by the random purchasing operations executed on a number of some leading stocks.  Furthermore, the traded liquidity level in the market recorded a noticeable decline by 41.80% compared to Tuesday’s session, to reach KD 6.66 million only.  Also, the market returned to close in the red zone at the end of week session, however the trading value increased noticeably by 169% compared to the previous session.

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 3.65% to end the week’s activity at 573.65 points. The Basic Materials sector was second on the losers’ list, which index declined by 3.38%, closing at 953.01 points, followed by the Real Estate sector, as its index closed at 908.95 points at a loss of 3.38%.

The Insurance sector was the least declining as its index closed at 1,123.66 points with a 0.30% decrease. On the other hand, the Technology sector was last week only gainer, which index grew by 1.41%, closing at 831.71 points.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 176.85 million shares changing hands during last week, representing 41.76% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 24.48% of last week’s total trading volume, with a total of around 103.68 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 17.04 million or 38.36% 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 9.11 million representing 20.52% of the total market trading value.

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