Kuwait bourse under pressure
Kuwait Stock Exchange (KSE) ended last week in the red zone, as both its main indices recorded losses. The price index ended last week with a decrease amounted to 1.84%, while the weighted index rose by 1.95% compared to the closings of the week before.
Furthermore, last week's average daily turnover decreased by 36.55%, compared to the preceding week, reaching KD 19.63 million, whereas trading volume average was 211.68 million shares, recording increase of 15.27%.
KSE witnessed strong presence of profit taking operations, as it was the main cause for the market losses. Those operations included wide variety of stocks, yet it was concentrated on the leading stocks in both of Banking and Services sectors; as a result, the weighted index losses were greater than the price index. In addition, speculations were the second factor which affected the market, as it mostly focused on Real Estate and Investment sectors' stocks.
On the other hand, the market is currently at a watch state waiting for the listed companies' results as the end of the third quarter of this year is approaching. This state created a conservative reaction among traders and negatively effected the traded liquidity compared to the previous week.
By the end of the week, the price index closed at 5,916.2 points, down by 1.84% from the week before closing, whereas the weighted index registered a 1.95% weekly loss after closing at 413.31 points.
Sectors' Indices All of KSE's sectors ended last week in the red zone. Last week's biggest loser was the Services sector, as its index declined by 3.11% to end the week's activity at 13,356.4 points. Whereas, in the second place, the Non Kuwaiti Companies sector's index closed at 5,567.9 points recording 1.90% decrease. The Food sector came in third, as its index closed at 4,048.0 points at a loss of 1.82%. The Insurance sector was the least declining as its index closed at 2,582.7 points with a 0.21% decrease.
Sectors' Activity The Services sector dominated total trade volume during last week with 353.44 million shares changing hands, representing 33.39% of the total market trading volume. The Investment sector was second in terms trading volume as the sector's traded shares were 29.92% of last week's total trading volume, with a total of 316.64 million shares.
On the other hand, the Services sector's stocks where the highest traded in terms of value; with a turnover of KD 25.88 million or 26.38% of last week's total market trading value. The Investment sector took the second place as the sector's last week turnover of KD 23.71 million represented 24.17% of the total market trading value.
Market Capitalization KSE total market capitalization declined by 1.95% during last week to reach KD 29.07 billion, as all of KSE's sectors recorded a decrease in their respective market capitalization. The Services sector was the most declining as its total market capitalization reached KD 7.32 billion, decreasing by 3.01%. The Non Kuwaiti Companies sector was the second in terms of recorded decline with 2.58% decrease after the total value of its listed companies reached KD 1.78 billion.
The third place was for the Investment sector, which total market capitalization reached KD 2.21 billion by the end of the week, recording a decline of 1.75%. The Insurance sector was the least declining with 0.29% recorded decrease after its market capitalization amounted to KD 299.75 million.