Thursday , December 14 2017

Market posts losses for 2nd week in a row

Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 6,582.75 points, down by 3.81% from the week before closing, the Weighted Index decreased by 1.19% after closing at 420.28 points, whereas the KSX-15 Index closed at 962.07 points down by 0.86%. Furthermore, last week’s average daily turnover decreased by 18.21%, compared to the preceding week, reaching K.D 48.98 million, whereas trading volume average was 530.82 million shares, recording a decrease of 14.53%.

The selling operations over controlled the trading activity in the Boursa, which caused its three indices to record different losses for the second consecutive week, which came in light of the continued profit collection operations that included many listed stocks, especially the small-cap ones that being traded below its book value, and recorded noticeable increases since the beginning of the current year.  The Price Index ended the week’s trading at 6,582.75 point level, with 3.81% loss, while the Weighted Index ended the week’s trading at 420.28 point level, down by 1.19%, and the KSX-15 Index lost by the end of the week about 0.86%, to close at 962.07 point level.

The Boursa recorded its losses in light of the decline in the trading indicators during the week on both the value and volume levels, compared to its levels in a week earlier, where the total volume of the traded stocks reached 2.65 billion stock, down by 14.53%, while the total trading value reached K.D. 244.92 million, down by 18.21%, compared to the trading levels in a week earlier.  Also, the market capitalization reached by the end of the last week K.D. 27.88 billion, declining by 1.06% when compared to its level in a week earlier, after it reached then K.D. 28.18 billion (Note: delisting of Safwan Trading & Contracting Company and Ikarus Petroleum Industries Company during the last week contributed to the decrease of the Boursa market cap by K.D. 44 million, the total market cap of the mentioned companies).

Moreover, the Boursa Kuwait initiated its first sessions of the week with noticeable decline affected by the active profit collection operations executed on the small-cap stocks, especially the ones that realized big gains during the previous period, which negatively affected the Price Index’s performance in particular, to decline by the end of the session steeply and lose about 157 point, the largest decrease in one session in more than one year.  The market was able in the second session to realize grouped gains for the three indices affected by the return of the purchasing activity that concentrated on the leading stocks, which positively affected the three Boursa indices, especially the Weighted and KSX-15 indices, to compensate all its losses recorded in the previous session, while the Price Index compensated a part of such losses.

On the mid-week session, the Boursa indices returned to the losses zone once again affected by the quick profit collection operations that included many listed stocks headed by the small-cap ones, which added to the Price Index’s losses on a weekly level, and pushed the Weighted and KSX-15 indices to the red zone once again.  However, Wednesday’s session witnessed a return of the three market indices to the green zone, supported by the speculative operations that concentrated on the small-cap stocks especially the ones being traded below its book value, which came in light of the increased trading levels for both the value and volume, where the cash liquidity increased by 12%, and the volume went up by 23%, compared to the previous session’s trading.

In addition, the Boursa witnessed at the end of the week session a return to the losses zone for the three indices, in light of the quick profit collection operations that continued since the beginning of the week, where the decline included most of the market sectors, especially the Real Estate and the Financial Services.

For the annual performance, the price index ended last week recording 14.52% annual gain compared to its closing in 2016, while the weighted index increased by 10.57%, and the KSX-15 recorded 8.71% growth.

Sectors’ Indices

Eight of KSE’s sectors ended last week in the red zone, while the other four recorded increases. The Oil & Gas sector headed the losers list as its index declined by 8.49% to end the week’s activity at 840.74 points. The Real Estate sector was second on the losers’ list, which index declined by 7.45%, closing at 1,028.24 points, followed by the Financial Services sector, as its index closed at 745.56 points at a loss of 6.93%. The Technology sector was the least declining as its index closed at 848.81 points with a 0.03% decrease.

On the other hand, last week’s highest gainer was the Health Care sector, achieving 3.83% growth rate as its index closed at 1,235.49 points. Whereas, in the second place, the Insurance sector’s index closed at 1,134.97 points recording 1.18% increase. The Basic Materials sector came in third as its index achieved 0.08% growth, ending the week at 1,301.44 points. The Industrial sector was the least growing as its index closed at 1,478.70 points with a 0.05% increase.

Sectors’ Activity

The Real Estate sector dominated a total trade volume of around 1.04 billion shares changing hands during last week, representing 39.05% of the total market trading volume. The Financial Services sector was second in terms of trading volume as the sector’s traded shares were 34.01% of last week’s total trading volume, with a total of around 902.77 million shares.

On the other hand, the Financial Services sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 68.17 million or 27.83% of last week’s total market trading value. The Real Estate sector took the second place as the sector’s last week turnover was approx. K.D 61.87 million representing 25.26% of the total market trading value.

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