KSE stocks end week on bearish note - Kuwait...

BU S INE S SSUNDAY, MAY 22, 2016

KUWAIT: Kuwait Stock Exchange (KSE) endedlast week in the red zone. The Price Indexclosed at 5,324.05 points, down by 1.32 per-cent from the week before closing, theWeighted Index decreased by 1.65 percentafter closing at 356.71 points, whereas theKSX-15 Index closed at 830.91 points down by1.67 percent. Furthermore, last week’s averagedaily turnover increased by 13.93 percent,compared to the preceding week, reaching KD11.82 million, whereas trading volume averagewas 110.24 million shares, recording adecrease of 7.02 percent.

The stock market took a downward direc-tion last week, and the three indices recordeddifferent losses in light of the selling pressuresand profit collections operations that overtookthe random purchasing operations which werepresent during some daily sessions of theweek, however were limited, and the sellingoperations included many traded stocks, amida mixed performance for the trading indicatorscompared to a week earlier, whereas the valuesincreased by the end of the week, with a limit-ed decrease in the volumes. Also many nega-tive factors contributed into the market declineduring the last week, headed by the drop inprofits of many listed companies for the firstquarter of the current year, in addition to theabsence of positive motivators that canincrease the purchasing traffic.

As per the daily performance of KSE; themarket recorded mixed closings to the threeindicators on the first day of the week, whereasthe Price and Weighted indices declined in par-allel with the selling operations witnessed by agroup of small-cap stocks, while KSX-15 Indexwas able to hold and end the session almostwithout a change. The market witnessed there-after a noticeable drop during Monday’s ses-sion, as a result to the strong selling operationsexecuted on stocks of different weights. Themarket returned to fluctuate on the third day,as the Price Index compensated a part of itsprevious day losses supported by the purchas-ing operations executed on some small-capstocks, while the Weighted and KSX-15 indices’losses increased by the end of the session dueto the selling operations that concentrated onthe leading stocks. On Wednesday’s session,the Price Index returned to the red zone onceagain, while the Weighted and KSX-15 indiceswere able to realize some increase, compensat-ing some of its previous losses. The marketcontinued its downward direction during theend of week sessions, which increased thethree indicators’ losses and was accompaniedby a limited decline in the trading activity.

Moreover, the market capitalization reachedby the end of last week KD 23.28 billion, declin-

ing by 1.23 percent when compared to its levelin a week earlier, as it was KD 23.57 billion. Onan annual level, the market cap for the listedcompanies in KSE dropped by 7.86 percentfrom its value at end of 2015, where it recordedthen KD 25.27 billion. As far as KSE annual per-formance, the price index ended last weekrecording 5.18 percent annual loss compared toits closing in 2015, while the weighted indexdecreased by 6.55 percent, and the KSX-15recorded 7.72 percent loss.

Sectors’ IndicesTen of KSE’s sectors ended last week in the

red zone, while the other two recordedincreases. The Telecommunications sectorheaded the losers list as its index declined by2.63 percent to end the week’s activity at597.55 points. The Consumer Services sectorwas second on the losers’ list, which indexdeclined by 2.21 percent, closing at 915.66points, followed by the Financial Services sec-tor, as its index closed at 568.16 points at a lossof 2.13 percent. The Industrial sector was theleast declining as its index closed at 1,032.04points with a 0.27 percent decrease.

On the other hand, last week’s highest gain-er was the Insurance sector, achieving 1.82 per-cent growth rate as its index closed at 1,018.53points. Whereas, in the second place, theTechnology sector’s index closed at 975.23points recording 0.87 percent increase.

Sectors‘ ActivityThe Financial Services sector dominated a

total trade volume of around 155.10 millionshares changing hands during last week, repre-senting 28.14 percent of the total market trad-ing volume. The Real Estate sector was secondin terms of trading volume as the sector’s trad-ed shares were 23.10 percent of last week’s totaltrading volume, with a total of around 127.35million shares. On the other hand, the Bankssector’s stocks were the highest traded in termsof value; with a turnover of around KD 25.89million or 43.80 percent of last week’s total mar-ket trading value. The Financial Services sectortook the second place as the sector’s last weekturnover was approx. KD 7.96 million represent-ing 13.46 percent of the total market tradingvalue. — Prepared by the Studies & ResearchDepartment, Bayan Investment Co.

KSE stocks end week on bearish noteBAYAN WEEKLY MARKET REPORT

NEW YORK: US stocks rose on Friday in a mod-est but broad rally that erased much of the loss-es from earlier in the week when investors hadsold over fears of rising interest rates.

Healthcare and technology stocks rose themost, helping to nudge the Standard andPoor’s 500 index back to slight gains for theweek and year. Nine of the index’s 10 sectorsclosed higher. Stocks rose from the start oftrading, following sizable gains in Europe.Among the winners, Intel climbed nearly 2 per-cent and Pfizer closed up 1.1 percent.

Investors were spooked earlier in the weekwhen the Federal Reserve released minutes of itslast meeting that suggested it may raise rates inJune, something the market had not expected.They scrambled to readjust portfolios, selling oiland copper, US Treasury bonds and stocks ofsteady dividend payers like utilities that tend tofall when rates rise.

But on Friday a measure of calm returned. USbonds barely moved, commodities ended mixedand utilities rose, albeit just 0.2 percent. The S&P500 rose 12.28 points, or 0.6 percent, to 2,052.32.The Dow Jones industrial average ended the dayup 65.54 points, or 0.4 percent, to 17,500.94. TheDow lost 0.2 percent for the week.

The Nasdaq composite climbed 57.03 points,or 1.2 percent, to 4,769.56. Applied Materials ledthe move higher in technology stocks. The mak-er of chipmaking equipment jumped $2.75, or14 percent, to $22.66 after reporting earningsahead of analysts’ forecasts.

Another big gainer for the day, Interoil,jumped $11.92, or 38 percent, to $43.57 afterrival Oil Search announced a deal to buy thecompany for $2.2 billion. The deal still needsapproval by shareholders.

Friday’s gains notwithstanding, the majorindexes have barely moved this year. StevenRicchiuto, chief economist at Mizuho Securities,says investors are uncertain about the strengthof the economy and that’s reflected in theirunwillingness to commit themselves to buying.

“There’s no conviction,” he said. “There is no

upside momentum.” Jim Paulsen, chief invest-ment strategist for Wells Capital Management,thinks investors will eventually come around. Hesaid he welcomes Fed talk of a rate increasebecause it shows things are getting better.

“The economy is good enough that eventhe Fed thinks it might be able to raise rates,”he said. “Job creation is there, unemploymentis low.” Among other stocks making big moves,Campbell Soup dropped $4.08, or 6 percent,to $59.90 after reporting third-quarter salesthat fell short of Wall Street expectations. Thecompany partly blamed challenges in its V8beverages business and problems with itsfresh carrot supply.

The clothes chain Gap rose 73 cents, or 4percent, to $18.01 after announcing lateThursday that it ’s closing 75 Old Navy andBanana Republic stores outside North America.The announcement came as the clothes retailerreported a 47 percent drop in first-quarter prof-its and lower revenue.

In Europe, stock markets reversed lossesfrom the previous day. Britain’s FTSE 100 was up1.7 percent while Germany’s DAX rose 1.2 per-cent. France’s CAC 40 advanced 1.7 percent.Japan’s Nikkei 225 rose 0.5 percent while SouthKorea’s Kospi was flat. Hong Kong’s Hang Sengindex rose 0.8 percent. Australia’s S&P/ASX 200gained 0.5 percent.

Benchmark US oil fell 41 cents to $47.75 abarrel in New York. Brent, used to price interna-tional oils, lost 9 cents to $48.72 a barrel inLondon. In other energy markets, wholesalegasoline inched up to $1.64 a gallon. Heatingoil rose 1 cent to $1.49 a gallon. Natural gasrose 2 cents to $2.06 per 1,000 cubic feet. Bondprices rose slightly. The yield on the 10-yearTreasury note held steady at 1.85 percent. Theeuro rose to $1.1219 from $1.1202, while thedollar rose to 110.23 yen from 109.89 yen.

Metals prices were mixed. Gold fell $1.90to $1,252.90 an ounce. Silver added 4 centsto $16.53 an ounce. Copper remained at$2.06 a pound. — AP

Stocks close higher, led by healthcare and tech firmsWALL STREET WEEKLY ROUNDUP

NEW YORK: The facade of the New York Stock Exchange. Global stock markets recovered their poise Friday in the wake of sizeablefalls triggered by the US Federal Reserve’s surprise indication that it could raise interest rates in June. — AP