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Stocks close in red; market cap down 1.11%

STOCKKuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 5,686.15 points, down by 1.77% from the week before closing, the Weighted Index decreased by 2.06% after closing at 386 points, whereas the KSX-15 Index closed at 914.80 points down by 2.59%. Furthermore, last week’s average daily turnover increased by 36.89%, compared to the preceding week, reaching KD 13.31 million, whereas trading volume average was 111.68 million shares, recording a growth of 2.67 %.

The three stock market indicators closed in the red zone for the second consecutive week, as it ended last week’s trading with different losses in light of the selling pressures that included a wide range of large-cap and small-cap stocks.  Such performance came as a result of the continuous existence of some negative factors such as the continued steep decline in the oil prices, in addition to the absence of new motivators that could contribute to the return of the purchasing activity.

As far as the daily performance of the market last week; KSE witnessed a mixed closing to the three indicators in the first session of last week, however in a downward direction in general, whereas the Weighted and KSX-15 indices recorded different losses affected by the selling operations that concentrated on the leading and heavy stocks, while the Price Index was able to end the session in green zone, supported by the speculative operations witnessed by some small-cap stocks, in addition to the constructive trading and the collection operations witnessed in the last moments of the session. On the next session, the stock market indicators met to close in the red  zone, under the influence of the selling pressures witnessed in the session, and included many listed stocks and concentrated on the large-cap ones, in addition to the quick profit collection operations witnessed by the small-cap stocks.

However in the mid-week session, the stock market continued its negative performance and the losses increased for the three indicators, among an growth in the value by around 127%, as the session was characterized by the steep drop since its beginning until it closed, which came as a result to the selling pressures that increased noticeably on many stocks, especially the small-cap ones.

Also, the market continued its losses in the remaining two sessions of the week, among an increased selling operations executed on many listed stocks of both leading and small-cap, which negatively affected the three market indicators to add up to its losses and reach its lowest level in two months.

The market capitalization of KSE reached by the end of last week KD 25.86 billion declining by 1.11% compared to its level in a week earlier, which was KD 26.15 billion. On an annual level, the market cap for the listed companies in KSE dropped by 7.57% from its value at end of 2014, where it reached then KD 27.98 billion.

As far as KSE annual performance, the Price Index ended last week recording 13% annual loss compared to its closing in 2014, while the Weighted Index decreased by 12.05%, and the KSX-15 contracted by 13.69%.

Sectors’ Indices

Ten of KSE’s sectors ended last week in the red zone, while the other two recorded increases. The Financial Services sector headed the losers list as its index declined by 2.88% to end the week’s activity at 610.64 points. The Basic Materials sector was second on the losers’ list, which index declined by 2.83%, closing at 992.43 points, followed by the Consumer Services sector, as its index closed at 1,022.37 points at a loss of 2.78%. The Insurance sector was the least declining as its index closed at 1,093.24 points with a 0.08% decrease.

On the other hand, last week’s highest gainer was the Oil & Gas sector, achieving 0.66% growth rate as its index closed at 796.22 points. Whereas, in the second place, the Health Care sector’s index closed at 945.16 points recording 0.60% increase.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 228.55 million shares changing hands during last week, representing 40.93% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 27.91% of last week’s total trading volume, with a total of around 155.88 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 28.05 million or 42.15% 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 11.70 million representing 17.59% of the total market trading value.

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