Market recording losses as issues heat up

KUWAIT: Boursa Kuwait ended last week in the red zone. The Price Index closed at 6,680.13 points, down by 1.22% from the week before closing, the Weighted Index decreased by 0.53% after closing at 397.21 points, whereas the KSX-15 Index closed at 907.32 points declining by 0.31%. Furthermore, last week’s average daily turnover increased by 32.29%, compared to the preceding week, reaching K.D 9.28 million, whereas trading volume average was 48.51 million shares, recording an increase of 34.56%.

The market continued recording losses as the political issues are getting hotter in the area during this period, which negatively affected on the fluctuation of the region’s markets, including Boursa Kuwait, to end the last week’s trading in the red zone. Also, the market was subject to pressures arising from the selling operations on many listed stocks of different sectors, especially the idle and small-cap stocks that been traded below its par and book values, which noticeably affected the Price Index in particular, the most losing index compared to its peers, the Weighted and KSX-15.

Boursa Kuwait recorded more than K.D. 245 million in losses of its market value in the last five sessions, whereas the market cap reached by the end of last week K.D. 26.24 billion, down by 0.93% compared to its level in a week earlier, where it was K.D. 26.48 billion. On an annual level, the market cap gains for the listed companies in the market contracted to reach 3.26% compared to its value at end of 2016, where it reached then K.D. 25.41 billion.

During this period, the market is witnessing a state of watch and caution waiting for the listed companies to disclose its first half financial results of the current year, ended by the end of the month of June, which could push some investors to refrain from trading in the market temporarily waiting for announcing such results to define their investment priorities for the coming period, where it is expected to be disclosed in the few coming weeks.

As per the daily trading activity, the market witnessed in the first session of the week a mixed performance for the three indices, whereas the Price Index witnessed a negative performance that pushed it to record strong losses considered the highest in around two months, as it dropped by more than 150 point, or 2.22% of its value, and was accompanied by the Weighted Index in the red zone, which declined by 0.42%, as a result to the large decrease witnessed by many small-cap stocks, especially the ones considered idle and did not witness active trading during the last period, while the KSX-15 Index ended the session’s trading with an increase by 0.55%, supported by the random purchasing operations that concentrated on some heavy and leading stocks.

The second session of last week was ended with noticeable losses for the three indices due to the selling pressures that many listed stocks were subject to, headed by the leading and heavy stocks that witnessed quick profit collection operations, which pushed the three market indices to close in the red zone.

The market was able to record different gains for its three indices in the mid-week session, as the three market indices were able to compensate a small portion of its losses recorded since the beginning of the week, supported by the purchasing operations executed on many listed stocks of different sectors, especially in the Oil & Gas sector, the most growing sector among the twelve sectors of the market. In addition, on Wednesday’s session, the market continued its increase supported by the continued purchasing operations on many listed stocks, headed by the leading ones, especially in the Banks sector.

However, the three Boursa indices returned in the last session of the week to fluctuate once again, whereas the Price Index realized some gain but did not exceed more than 0.14% only, while the Weighted and KSX-15 indices returned to the red zone once again by recording different losses, which added to its weekly losses. For the annual performance, the Price Index ended last week recording 16.21% annual gain compared to its closing in 2016, while the Weighted Index increased by 4.50%, and the KSX-15 recorded 2.52% growth.

Sectors’ Indices
Nine of Boursa Kuwait’s sectors ended last week in the red zone, while the other three recorded increases. The Telecommunications sector headed the losers list as its index declined by 5.75% to end the week’s activity at 568.78 points. The Insurance sector was second on the losers’ list, which index declined by 5.72%, closing at 1,009.91 points, followed by the Consumer Services sector, as its index closed at 1,022.59 points at a loss of 3.13%. The Industrial sector was the least declining as its index closed at 1,890.11 points with a 0.61% decrease.
On the other hand, last week’s highest gainer was the Health Care sector, achieving 7.06% growth rate as its index closed at 1,718.45 points. Whereas, in the second place, the Oil & Gas sector’s index closed at 1,011.55 points recording 4.41% increase. The Technology sector came in third as its index achieved 0.14% growth, ending the week at 661.83 points.

Sectors’ Activity
The Financial Services sector dominated a total trade volume of around 94.48 million shares changing hands during last week, representing 38.98% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 25.45% of last week’s total trading volume, with a total of around 61.68 million shares.
On the other hand, the Banks sector’s stocks were the highest traded in terms of value; with a turnover of around K.D 14.92 million or 32.16% 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. K.D 9.55 million representing 20.58% of the total market trading value.


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