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Sunday , November 29 2020

Kuwait indices hit significant low levels – Market cap loses around KD 1.56 bn during week

Kuwait Stock Exchange (KSE) ended last week in the red zone. The Price Index closed at 4,946.33 points, down by 6.07% from the week before closing, the Weighted Index decreased by 7.08% after closing at 330.24 points, whereas the KSX-15 Index closed at 767.74 points down by 7.32%. Furthermore, last week’s average daily turnover increased by 14.39%, compared to the preceding week, reaching KD 15.90 million, whereas trading volume average was 143.68 million shares, recording an increase of 64.60%.

The three stock market indicators declined steeply and reached significant low levels as a result to the strong selling pressures that included many stocks of different sectors, especially the leading the heavy ones in the Banks Sector, which affected the KSX-15 Index’s performance in particular, as it is still recording historical declines and it reached levels that never witnessed since its inception in May 2012.

The market losses during the last week came in light of the increased selling operations, among a noticeable growth in the trading activity compared to a week earlier, especially the trading volume, which increased by more than 64%, whilst the liquidity level increased by only 14.39%.

The stock market initiated its first session of the week with noticeable losses for the three indices as a result to the sharp selling pressures that most of the stocks witnessed in all sectors except for the Insurance Sector, which non of its stocks were traded during the session, while the selling operations concentrated on the leading and heavy stocks, especially in the Banks Sector, where its index decline by the end of the session by more than 5%.

On the next session, the market witnessed a mixed performance for the three indices, as the Weighted and Price indices continued its losses in light of the continued selling operations and quick speculations executed on some stocks, whilst the KSX-15 Index was able to realize a small gain supported by the random purchasing operations executed on a limited number of the heavy stocks.

On Tuesday’s session, the market was able to hold and return to the green zone once again, as its three indices realized gain for the first time since the beginning of the year, especially that the Price Index was not able to record any gain since the end of 2015.  Such performance came in light of the random purchasing operations that included some stocks of big losses in previous sessions.

Also, the stock market did not succeed in keeping its upward direction, as its three indices declined in the last two sessions of the week, which added to the market losses on the weekly level significantly.

On the other hand, the drop in prices of many stocks during last week’s trading caused the market cap to lose around KD 1.56 billion, to reach KD 21.58 billion, compared to KD 23.54 billion at the end of a week earlier.

Sectors’ Indices

All of KSE’s sectors ended last week in the red zone. Last week’s biggest loser was the Banks sector, as its index declined by 9.14% to end the week’s activity at 761.74 points. Whereas, in the second place, the Financial Services sector’s index closed at 506.72 points recording 8.50% decrease. The Basic Materials sector came in third, as its index closed at 844.10 points at a loss of 7.79%. The Telecommunications sector was the least declining as its index closed at 575.19 points with a 2.02% decrease.

Sectors’ Activity

The Real Estate sector dominated a total trade volume of around 273.16 million shares changing hands during last week, representing 38.02% of the total market trading volume.

The Financial Services sector was second in terms of trading volume as the sector’s traded shares were 29.63% of last week’s total trading volume, with a total of around 212.88 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 32.75 million or 41.21% 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. KD 19.23 million representing 24.20% of the total market trading value.

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