large caps steal the show
KUWAIT: Kuwaiti equities ended yesterday's session on a mixed note. Large cap stocks outperformed small cap stocks, driving market the Global General Index (GGI) to its highest level in seventeen trading days.
GGI added 0.68 of a point (or 0.21 per cent), and closed at 323.09 points. On the other hand, the market benchmark, KSE Price Index saw a slim decline of 5.6 points (or 0.05 per cent) climb, to close at 11,466.7 points. Shares of IFA Hotels & Resorts started trading on KSE yesterday. The scrip opened trading at KD1.600 but succumbed to the selling pressure to close at KD1.500. IFA Hotels & Resorts, a subsidiary of International Financial Advisors (IFA), is widely recognised as one of the world's leading hospitality companies, with an authorised capital of KD26mn. IFAHR is engaged in the development of premier resorts, mixed-use hotels and tourism resorts projects throughout Europe, the Middle East, Africa and the Indian Ocean. Furthermore, IFA has recently acquired Moribo Leisure Limited of South Africa, a listed company in Johannesburg Stock Exchange, and plans to change its name to IFA Hotels & Resorts Limited in the first quarter of 2006. IFA Hotels & Resorts will also apply for listing in Dubai Financial Market (DFM) soon. It is noteworthy to mention that International Financial Advisors was the first Kuwaiti company to be listed in DFM in September 2005. IFAHR is one of the largest investors on the Palm Jumeirah, Dubai, with investments of $1bn. Investments consist of Fairmont Palm Hotel & Resort, Fairmont Palm Residence and Fairmont Crescent Hotel & Resort on the Palm breakwater.
Both the volume and value of shares traded on the exchange picked up considerably yesterday. Investors exchanged 160.45mn shares (+17.54 per cent) at a total value of KD72mn (+20.05 percent). Recently listed Iraq Holding Co was yet again the most actively traded stock, with investors exchanging 55.44mn of its shares, or 34.55 per cent of the market's total volume. The scrip extended its winning streak to four sessions, with yesterday's 5.56 per cent improvement. Meanwhile, investors continued to shy away from insurance stocks, as the sector saw no activity for the second straight session. The sector index ended 2005 up 21.52 per cent. On the economic front, crude oil prices edged higher yesterday as consumers feared an unresolved row over Russia's natural gas price to Ukraine could yet crimp fuel supplies to Europe. U.S. light crude for February delivery rose 31 cents to $61.35 a barrel, building on a three-day rally that lifted prices 5 percent at the end of last year.
Market breadth was negative yesterday, with decliners outpacing advancers by a 52 to 34 margin. Market capitalisation of the 159 listed companies stood at KD42.25mn by session-end. National Industries Group (Holding) picked up where it left off on Monday, adding 5.81 percent more. Investors were building their positions in the stock to get a piece of the company's lucrative capital increase, believed to be offered soon. The industrial sector index rose 2.14 per cent in the day. Elsewhere, Dubai-based Shuaa Capital was the biggest percentage advancer during the day, clocking 6.67 percent in gains. The climb, along with a 5 percent increase in the equity price of Solidere - A, drove the Global Non-Kuwaiti Index up 1.56 per cent.
On the other side of the spectrum, Kadhma Holding Co witnessed some profit-taking, sending it tumbling by 5.38 per cent. The sector as a whole, represented through the Global Investment Index recoiled by 0.16 per cent. Industrial & Financial Investment Co. too dropped 4.69 percent. But services stock were the major losers, with the sector index down 0.94 per cent. Sector heavyweights Mobile Telecom Co (MTC), Public Warehousing Co and National Mobile Telecom Co were down 1.14 per cent, 1.4 per cent and 0.78 per cent respectively.
Burgan Well Drilling Co signed a KD3.78mn contract with Kuwait Oil Co (KOC) to carry out drilling operations in Kuwait. Shares of IFA Hotels & Resorts started trading on KSE yesterday (03-01-2006). Gulf Glass Manufacturing Co signed a deal with Pepsi Cola - Lebanon under which it will supply the latter with glass bottles through-out 2006. The contract is worth KD0.41million.
© Kuwait Times 2006
