Boursa Kuwait ended last week in the red zone. The Premier Market Index closed at 4,765.63 points, down by 0.58%, the Main Market Index decreased by 0.07% after closing at 4,864.35 points, whereas the All-Share Market Index closed at 4,801.86 points down by 0.39%. Furthermore, last week’s average daily turnover increased by 7.63%, compared to the preceding week, reaching K.D 12.28 million, whereas trading volume average was 69.92 million shares, recording an increase of 55.29%.

The Market recorded a weekly loss of around K.D. 146.30 million, whereas the market capitalization for the total listed stocks by the end of the week declined to about K.D. 26.57 billion against K.D. 26.72 billion in the previous week, down by 0.55%.(Note: The market cap for the listed companies in the Market is calculated based on the weighted average number of the outstanding shares as per the latest available official financial statements).

Despite the positive performance of the Boursa during some daily sessions of last week, its three indices ended the week with mixed losses on the weekly level, came as a result to the increased selling pressures on the leading and heavy stocks, in addition to the return of the quick speculations’ control over trading of the small-cap stocks, and the low trust state that took over some traders due to the lack of positive motivators to contribute in activating the market, which were enough reasons to push the Boursa indicators to the red zone.

As far as the daily trading activity during the last week, the three Boursa indices ended the first session of the week in the green zone, for the first time since the Market Development 2 phase was initiated, as a result to the strong and active purchasing activity that included a wide range of the listed stocks, headed by the leading ones, especially in the Banks sector, in addition to the return of the speculative operations to arise once again, amid concentration of such trading on the small-cap stocks as usual. Also, despite the Boursa gains recorded earlier in the week, the trading indicators witnessed a drop, of both the volume and the value, whereas the number of traded stocks decreased by the end of the session by 8%, while the trading value declined by 22.94%, reaching only K.D. 8.47 million.

The Boursa could not continue recording gains in the second session, as its three indices decreased steeply, affected by the selling pressures that returned once again to control over the trading activity in the Market, in addition to the quick speculative operations executed by some traders, causing many stocks’ prices to drop, and pushing the Boursa to lose all its gains recorded in the first session of the week, as the market cap declined by 0.78%, or more than K.D. 200 million.

On the mid-week session however, the three Boursa indices were able to return to the green zone once again, ending the session with a limited increase as a result to the random purchasing operations, concentrated on some leading stocks, especially after disclosing some local banks of its first quarter financial results for the current year, which revealed a growth in its net profits compared to the same period of last year.

Moreover, the Boursa continued recording gains for its three indices on Wednesday’s session, which came amid a noticeable growth in the liquidity, as it increased by 72.64% reaching K.D. 18.17 million, its highest level since the Market segmentation. The Boursa witnessed such performance in light of traders’ concentration on the Banks sector’s stocks, which acquired more than 70% of the cash liquidity during the session. The Boursa witnessed on the last trading session of the week a return to its three indices to the loss zone once again, affected by the selling pressures activity and the profit collection operations that included many listed stocks in the Market, headed by the leading stocks, which was reflected on the Premier Market Index performance in particular, the most declining Index compared to the Main and All-Share indices.

Furthermore, last week witnessed a trading activity over 139 stock out of 176 listed stock in the Market, where 74 stock declined, against 56 stock grew, with 46 stock remained at no change.

Sectors’ Indices

Seven of Boursa Kuwait’s sectors ended last week in the red zone, five recorded increases. The Telecommunications sector headed the losers list as its index declined by 6.72% to end the week’s activity at 872.52 points. The Insurance sector was second on the losers’ list, which index declined by 5.29%, closing at 923.05 points, followed by the Technology sector, as its index closed at 999.16 points at a loss of 3.54%. The Health Care sector was the least declining as its index closed at 991.93 points with a 0.81% decrease.

On the other hand, last week’s highest gainer was the Basic Materials sector, achieving .3.05% growth rate as its index closed at 1,017.41 points. Whereas, in the second place, the Consumer Services sector’s index closed at 1,011.01 points recording 1.06% increase. The Banks sector came in third as its index achieved 1.01% growth, ending the week at 967.05 points.

Sectors’ Activity

The Financial Services sector dominated a total trade volume of around 112.30 million shares changing hands during last week, representing 32.12% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector’s traded shares were 25.17% of last week’s total trading volume, with a total of around 87.98 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 30.23 million or 49.22% of last week’s total market trading value. The Telecommunications sector took the second place as the sector’s last week turnover was approx. K.D. 6.37 million representing 10.38% of the total market trading value.