Kuwait Stock Exchange Monthly Report

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1 Kuwait Stock Exchange Monthly Report January 2016 Disclaimer: This report is prepared and issued by the Studies & Research Department at Bayan Investment Company, based on the available and published information and any other reliable sources, for publishing purposes only. This report is not an offer or recommendation to buy or sell any security or stock mentioned herein. However maximum care measurements have been taken to guaranty correct presented data, neither Bayan Investment Company nor any of its employees shall hold in any way responsible for an insufficient or inaccurate information. 1

This report is not an offer or recommendation to buy or sell any security or stock mentioned herein.

2 Kuwait Stock Exchange (KSE) ended January in the red zone. The Price Index closed at 5, points, down by 8.92% compared to the closings of the month before, the Weighted Index Decreased by 7.41% after closing at points, whereas the KSX-15 Index closed at points decreasing by 7.84%. Furthermore, last month's average turnover increased by 28.34%, compared to the preceding month, reaching K.D million, whereas trading volume average was million shares, recording an increase of 26.88%. The three stock market indicators recorded steep losses considered to be the strongest, on the monthly level, since a long time, whereas it declined greatly in light of the random selling operations that were present during most of the trading periods, and included many of the listed stocks in the market of both the leading and small-cap ones. Therefore, the stock market indicators decreased and reached very low levels, especially the Price Index that crossed level 5,000 point down during some daily sessions of the month, before it was able to return above the level in the last two sessions of the month. Moreover, the random selling operations witnessed during the last month included many listed stocks of different sectors, especially in the Financial Services and the Basic Materials sectors, which were the most declining among the other sectors during January. Meanwhile, the purchasing operations were not absent from affecting the trading direction during the 2

34%, compared to the preceding month, reaching K.D 14.10 million, whereas trading volume average was 134.86 million shares, recording an increase of 26.88%.

3 month, as the three market indicators were able to realize some gains and compensate a part of its previous losses during the few last sessions of the month, supported by the positive results and distributions disclosed by some banks and listed companies for the financial year 2015, however it was not enough to push all of the market indicators to close in the green zone on the monthly level. Also, the market was subject to a watch and cautious state that over controlled many of the traders in the market during January, awaiting for the listed companies financial results for 2015, especially that the percentage of the companies that disclosed its results did not exceed more than 11% from the total listed companies in the market. The market capitalization reached by the end of January K.D billion, declining by 7.29% compared to its level in December, as it was K.D billion. 3

Also, the market was subject to a watch and cautious state that over controlled many of the traders in the market during January, awaiting for the listed companies financial results for 2015,

4 Sectors Indices All of KSE s sectors ended last month in the red zone except for one sector. The Financial Services sector headed the losers list as its index declined by 11.82% to end the week s activity at points. The Basic Materials sector was second on the losers list, which index declined by 10.91%, closing at points, followed by the Real Estate sector, as its index closed at points at a loss of 10.54%. The Technology sector was the least declining as its index closed at points with a 1.85% decrease. On the other hand, the Health Care sector was last week only gainer, which index grew by 3.77%, closing at points. 4

The Basic Materials sector was second on the losers list, which index declined by 10.91%, closing at 878.

5 Sectors Activity The Financial Services sector dominated total trade volume during last month with million shares changing hands, representing 33.28% of the total market trading volume. The Real Estate sector was second in terms of trading volume as the sector s traded shares were 31.28% of last month s total trading volume, with a total of million shares. On the other hand, the Banks sector s stocks were the highest traded in terms of value; with a turnover of K.D million or 42.85% of last month s total market trading value. The Real Estate sector took the second place as the sector s last month turnover of K.D million represented 15.37% of the total market trading value. 5

28% of last month s total trading volume, with a total of 843.79 million shares.

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