By: Mohamed Farouk
Mubasher: Boursa Kuwait indices closed in the green for the second session in a row in 2019, on Thursday, led by high buying momentum in the main market index.
The main market index added 0.38%, while the premier market index grew 0.67%, and the all-share index increased 0.57% or 29.3 points, reaching 5,138.94 points, its highest level in four months.
Turnover surged 64% to KWD 25.72 million on Thursday from KWD 15.69 million on Wednesday, while volumes grew 41% to 238.97 million shares against 169.51 million.
Analyst comment
Commenting on Thursday’s trading activity, technical analyst Nizar Younes described 2019 as the “Launchpad for the main market,” indicating that stocks on the index have been trading places in terms of activity, with Aayan being most active on Wednesday, Abyaar the highest traded today, and last week Mashaer was the most traded.
Main market stocks seized over 81% of Boursa Kuwait’s total volumes, while turnover on the index was close in value to that of the premier market index recently, according to the analyst, who said this meant that main market stocks were of growing interest to traders and investors.
From a technical perspective, Younis told Mubasher that main index succeeded in breaking long-time resistance at 4,750 and moving on to second resistance at 4,770, noting that the index was now likely to rise “strongly” towards more important resistance at 4,800 points.
As for the all-share index, the analyst noted that this index’s strength mainly derived from the premier market’s growth, “which has not been disappointing until now.” However, he noted that, of late, this strength has moved from the premier market index to the main market index after several stock surges.
The all-share index will see resistance at 5,150 points, Younis said, indicating that a rise above this level early next week would boost the index towards 5,200, which if it passes, would confirm the rising trend often seen at the start of the year on Boursa Kuwait.
Trades
In terms of trades, six sectors were among the gainers, led by telecoms which added 1.64%, while four were down, led by consumer services, which lost 2%.
Equipment Holding led rising stocks, surging 10.3% on Thursday, while IFA Hotels led fallers, plunging 20%.
Kuwait Finance House (KFH), up by around 1%, was the value leader with KWD 2.84 million, while Abyaar, which advanced 6%, was the most active in terms of volume with 47.66 million shares traded.
Translated by: Nada Adel Sobhi
