KUWAIT CITY: Kuwait stocks declined on Sunday, to wind up the month on dull note as profit taking dragged select frontline scrips and middle level stocks. The market slid 52.5 points led by Agility and Zain even as other blue chips mostly ended in the positive region. Agility fell 1.8 percent while the telecom service provider dropped 2.2 percent trimming the strong gains in the previous session. The market sentiment was markedly bearish even as investors toed the sidelines.
Banking stocks closed mixed. Sector bellwether National Bank of Kuwait took in 20 fils extending it gains while Burgan Bank finished flat. Kuwait Finance House dropped 20 fils whereas Al Ahli Bank soared 100 fils, the maximum permitted single day rise. Investment major KIPCO lost 20 fils while Global Investment House rose 10 fils. National Industries Group dropped 20 fils and Wataniya Telecom closed stagnant.
KSE index eroded 0.5 percent to close at 14,446.7 points amid a decline in volume turnover. Among other decliners, Kuwait Food Co (Americana) slid 60 fils and Automated Systems Co lost dipped fils. The bourse has been trading in the red for most part of last week and has erased 174 points in the past five trading days. It closed lower in four of the five sessions and eroded over 88 points week-on-week. The benchmark, which slid below the 15000 point mark on July 9th, is up 15.5 percent since the start of the year, the top performer in the region. The sectoral indices swung mostly lower. Banking sector rose 1.4 percent led by National Bank of Kuwait and Al Ahli Bank whereas investment sector edged 0.7 percent down weighed by KIPCO and losses in some of the large caps. The two sectors constitute the bulk of shares traded in the bourse.
Moderate
Real estate dropped 0.9 percent pulled by National Real Estate Co and Mabanee Co while none of the insurance stocks were traded during the day. Industrial sector rose 0.2 percent helped by moderate gains by National Industries Group. Services sector eroded 0.5 percent dragged by losses in blue chips and some of the speculative positions while food sector fell 0.2 percent led by Kuwait Food Co. Non-Kuwaiti sector slipped 0.2 percent weighed by Gulf Finance House while parallel market and funds sector indices were stagnant. In the bourse related news Kuwait Financial Centre (KFC) has announced the launch of Atlas Category Fund for emerging markets focusing on infrastructure sector, consumer goods, telecommunications and agriculture especially in Asian emerging markets. Global Investment House has announced the completion of a deal to acquire a controlling stake in the Saudi Al Swani Food and Industrial Equipment Co. Global Fund is also planning to increase the company's capital to $100 million to finance acquisitions by the company in retail sector.
Kuwait Finance House, the biggest lender in terms of market capitalization in KSE, is mulling to invest $ 275 in a real estate project in China as part of its strategy to boost its exposure in Asia. KIPCO Asset Management Co (KAMCO) is priming to set up a KD 25 million ($93.49) company in Kuwait to facilitate investment in real estate in the Gulf region. The company is also readying to launch a $ 100 million fund in global hedge funds.
The volume of shares dipped by almost 30 percent as investors appeared to be reluctant to take positions due to lack of strong cues and overall dull sentiments. The market liquidity had been thin during the month owing in part to the ongoing IPOs and the summer vacation.
Banking sector jumped by more than half its earlier level led by NBK while investment dipped by almost one-third of its previous mark. Real estate shrank 55 percent while industrials climbed 29.7 percent volume wise helped by brisk trading in Metal and Recycling Co.
Services sector dropped 18 percent and food sector slid by more than half of its previous mark. Non-Kuwaiti sector fell 13 percent and parallel market saw 94 percent dip in liquidity.
Benefit
Global Investment House has announced the launch of Mayur Hedge Fund, the first direct India specific product by the investment banker. The fund aims at achieving capital growth and provide investors the opportunity to benefit from the long term growth of the Indian market. Global has also acquired 60 percent stake in Saudi retail chain Al Sawani Food and Industrial Supply Co.
Industrial and Financial Investments Company has announced its partnership with some of its investing clients to acquire a 3 percent stake of French company Inside Contactless. The company owns 70 percent of payment cards in the American market. MENA Holding Company is mulling to buy 3 companies operating in different sectors in real estate, services, and investment. After the deal is completed, the MENA would make official requests for the listing of the 3 companies in Kuwait Stock Exchange.
The market opened on a choppy note but slid sharply below the red in early trading as profit taking dominated the trading floor. KSE index plateaued off thereafter and moved sideways for the almost rest of the session as sentiments failed to firm up. The market closed well below the opening level even as investors liquidated their positions to limit losses.
In concerted move to curb speculation, Kuwait central bank earlier in the month has stopped offshore banks from making bets on the daily movement of its dinar currency through Kuwaiti banks. Local banks in the Gulf Arab state have been notified that they are allowed to buy or sell US dollars only from the central bank for commercial purposes. This is intended to discourage local banks from using the dinars they buy from the central bank to provide liquidity to offshore banks and speculators seeking to take positions on the Kuwaiti currency.
Reflecting the downbeat mood, losers outled the advancers. 40 stocks edged higher while 66 closed in the red. Of the 151 counters active on the opening day of the week, 45 closed unchanged. 4638 deals worth KD 65.47 deals were transacted -- down 31.6 percent from earlier session.
Steepest
Top percentage gainer, Al Ahli Bank vaulted 9.2 percent to KD 1.180 while Kuwait Building Manufacturing Material Co climbed 8.7 percent to stand next. Automated Systems Co slid 8.4 percent, the steepest decliner of the day, while Network Holding Co topped the volume with over 10 million shares changing hands.
National Bank of Kuwait and Gulf Bank rose 20 fils each to end at KD 1.780 and KD 1.160 while Commercial Bank held ground at KD 1.260. BKME fell 10 fils while Kuwait Finance House edged 20 fils down to KD 2.700. Burgan Bank and Boubyan were stagnant while BKME fell 10 fils.
KIPCO flunked 20 fils to wind up at KD 1.120 on a volume turnover of 1.7 million shares whereas Global Investment House took in 10 fils. Burgan Group Holding Co dipped 50 fils to finish at KD 0.780 and Noor Financial and Investment Co fell 5 fils. National Real Estate Co closed 10 fils lower at KD 0.510 and Mabanee Co dropped 20 fils to KD 1.500.
National Industries Group gained 20 fils to close at KD 1.120 whereas RISCO dropped 25 fils. Zain settled at KD 1.720 after losing 40 fils and Agility edged 20 fils lower. Kuwait Gulf Links rose 10 fils and Wataniya Telecom did not budge.
By John Mathews
© Arab Times 2008
