Saturday , October 21 2017

Market indices record losses during week

KSE

Trading volume average 141.75 million shares, up 17.63%

Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,720.65 points, down by 0.59% from the week before closing, the Weighted Index decreased by 0.67% after closing at 386.63 points, whereas the KSX-15 Index closed at 929.84 points down by 0.81%. Furthermore, last week’s average daily turnover decreased by 13.86%, compared to the preceding week, reaching K.D 13.54 million, whereas trading volume average was 141.75 million shares, recording a growth of 17.63%.

Kuwait Stock Exchange indices recorded losses last week, affected by the presence of many negative factors which pushed some investors to execute random selling operations, and caused many of them to refrain from trading until seeing positive motivators in the horizon. The three stock indicators ended last week with large losses in parallel with the grouped declines recorded by the GCC stock markets during the week, as the negative impact is still controlling the trading activities among decreased investors’ confidence and noticeable decline in the trading activity, whereas the market was subject to a strong trend of selling for profit operations, concentrated on large-cap and small-cap stocks.

As far as the daily trading activity, the stock market ended the first trading session with mixed closing for the three indices, among a declined liquidity level by 16.93%, whereas the Price Index was able to realize small gains as a result to the active speculative operations that included few small-cap stocks, whilst the profit collection operations executed on a number of the leading stocks caused the Weighted and KSX-15 indices to drop by the end of the session, among an increased trading volume reached 79.43%.

Also, the stock market continued its mixed performance in the second session of the week, whereas the profit collection operations executed on some small-cap stocks, pushed the Price Index to close in the red zone, while both the Weighted and KSX-15 indices were able to compensate its previous session’s losses, supported by the relatively active trading on some operational and heavy stocks, among a decline in the volume level by 32.26% and increased trading value compared to the previous session.

However in the pre-final session of the week, the Price Index continued its downward direction, followed by the Weighted and KSX-15 indices, affected by the strong selling pressures on the small-cap stocks and the profit collection operations on the leading stocks that realized gains in the previous session.

Moreover, the market ended the week’s sessions with losses to its three indicators, whereas the market witnessed a strong profit collection operations caused many stocks’ prices to drop, both the leading and small-cap stocks, among a noticeable decline in the trading activity, especially the value, which decreased by around K.D. 3.5 million, or 23.30% compared to the previous day.

On the other hand, the market cap for KSE reached by the end of last week KD 25.66 billion, down by 0.64% from its level in a week earlier, which was around KD 25.82 billion. However on an annual level, the market cap for KSE listed companies recoded a decline of 8.29% compared to its level in 2014, where it reached then KD 27.98 billion.

As far as KSE annual performance, the Price Index ended last week recording 12.47% annual loss compared to its closing in 2014, while the Weighted Index decreased by 11.91%, and the KSX-15 contracted by 12.28%.

Sectors’ Indices

Three of KSE’s sectors ended last week in the green zone, while nine recorded declines. The Technology sector headed the gainers list as its index grew by 6.12% to end the week’s activity at 917.65 points, followed by the Basic Materials sector, as its index recorded a weekly increase of 0.57% closing at 976.10 point. The Banks sector came in third place, as its index increased by 0.54%, closing at 921.94 points.

On the other hand, the Consumer Goods sector headed the losers list last week, as its index declined by 1.60% closing at 1,072.46 point, while the Insurance sector came in the second place after closing the week at 1,113.70 point and losing 1.06%, followed by Oil & Gas sector in the third place after closing the week at 797.59 point, and losing 1.01%.The Consumer Services sector was the least declined during last week, as its index recorded a weekly loss of 0.25%, closing at 1,019.57 point.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 172.56 million shares changing hands during last week, representing 30.43% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 26.60% of last week’s total trading volume, with a total of around 150.81 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 18.16 million or 33.54% 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 9.83 million representing 18.15% of the total market trading value.

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