By: Mohamed Farouk
Kuwait – Mubasher: Boursa Kuwait's indices concluded July in the green, after registering a collective rise over the month.
The general price index gained 1.31% or 88.8 points, to close at 6,851.62 points, up from June’s closing of 6,762.82 points.
The weighted index grew 3.5% or 14 points to 413.29 points, while the Kuwait 15 index added 3.63% to reach 943.17 points.
Turnover surged 99.3% to KWD 300.51 million in July from KWD 150.8 million in June, while traded volume jumped 148% to 1.82 billion shares traded versus 734.5 million.
Average trading per session amounted to KWD 13.66 million in terms of turnover, 82.8 million shares in terms of volume, and 3,070 transactions.
Boursa Kuwait’s market capitalisation rose 3.4% month-on-month, or by around KWD 930 million ($3.07 billion) to KWD 28.19 billion ($93.02 billion) in July, compared to KWD 27.26 billion ($89.95 billion).
A total of nine sectors ended the month in the green, led by oil and gas, which surged 11.7%, whereas consumer staples led losers, falling 5.7%.
Analyst comments
Commenting on Boursa Kuwait’s performance in July, market analyst Ibrahim Al Filkawy stated that the month began on a positive note, but the last week saw some negative performance, with turnover falling from its KWD 25 million average for the first three weeks.
The reasons behind the shift in trading are the calming geopolitical, particularly GCC, atmosphere, the rise in oil prices and global stock markets, added to the positive financial results of several Kuwait-listed companies, the analyst told Mubasher.
Moreover, several blue chips saw strong institutional investor buying, both by governmental and non-governmental institutions, he added.
As for the benchmark index’s movement, Al Filkawy told Mubasher that the range for 2017 is 300 points, up or down, whereas the monthly range is of around 100 points.
From a technical perspective, Boursa Kuwait is seeing a sideways movement, whilst maintaining the support level of 6,600 points, the analyst highlighted.
In the event of a rebound in August, the bourse may extend its rise towards 6,860 points and target the level of 7,000 points, Al Filkawy noted, adding that a break below weekly support at 6,750 points will result in negative performance within the 6,600 and 6,560 points range.
Translated by: Nada Adel Sobhi
