25 June 2006
KUWAIT: Kuwait stocks ended marginally higher yesterday, as the market recovered from four days of losses fuelled by second quarter earnings fears and the upcoming elections.
Analysts blamed the recent negative market mood on the coming elections. They do not expect the market to get too far ahead of itself in a positive direction ahead of parliamentary elections the coming Thursday. Gains were not steady throughout the day. All three major indices had traded in the negative zone until afternoon, before turning decidedly higher in a late trading buying spree. The Global General Index (GGI) closed up 0.3 of a point, or 0.11 per cent, at 276.69 points.
However, yesterday's gains were insufficient to help the index nudge out of the negative territory for June.
KSE Price Index rose a slim 2.8 points (or 0.03 per cent) to 9,931.6 points. On the broader market for equities, breadth was awkwardly tilted in favour of declining stocks by a margin of 43 to 37. Volume was light in yesterday's trading, with 119.55mn shares exchanging hands on the Kuwait Stock Exchange. The activity was the lightest in over five weeks of trading. Gulfinvest International continued to witness increased investor interest, trading 17.19mn shares. However, profit-taking highlighted the intense trading, driving the scrip down by 8.33 per cent. In news, Arab Real Estate Co received an offer to sell its 49 per cent stake in Gulfa Mineral Water and Processing Industries. The announcement lifted the stock by 2.56 per cent in yesterday's trading.
The advance was broad-based with four out of the eight sectors managing to eke out gains. The Global Services Index spearheaded advancers, up 0.97 per cent. A 6.45 per cent jump in the equity price of IFA Hotels & Resorts bolstered the sector's performance.
The scrip was flat at KD1.200 before riding on the current two-day winning streak, which saw it grow by 10 per cent. Credit Rating & Collection Co too was a notable gainer, edging 5.62 per cent higher. The tone for earnings will definitely set the direction of the market, and that's going to provide some support if its positive. We have seen the worst of the correction, but the road back to the old highs might take us through the summer into the fall. Elsewhere, shares of Kuwait Lebanese Real Estate Development Co. wiped out all the losses incurred during Wednesday's session, adding 5.38 percent. The real estate sector index housed a 0.21 per cent advance.
Separately, shares of Al-Ahlia Investment Co were the biggest percentage gainers, inching 8.33 per cent higher. Volume was at 7.06mn shares. The scrip has grown by 30 per cent since returning to the trading ring on Wednesday. The investment sector as a whole, represented by the Global Investment Index, rose 0.17 per cent.
Meanwhile, companies that offered up weak performances in the day included Aref Investment Group (-8.47 per cent), Salhia Real Estate Co (-7.58 per cent) and Combined Group Contracting Co (-6.85 per cent).
KUWAIT: Kuwait stocks ended marginally higher yesterday, as the market recovered from four days of losses fuelled by second quarter earnings fears and the upcoming elections.
Analysts blamed the recent negative market mood on the coming elections. They do not expect the market to get too far ahead of itself in a positive direction ahead of parliamentary elections the coming Thursday. Gains were not steady throughout the day. All three major indices had traded in the negative zone until afternoon, before turning decidedly higher in a late trading buying spree. The Global General Index (GGI) closed up 0.3 of a point, or 0.11 per cent, at 276.69 points.
However, yesterday's gains were insufficient to help the index nudge out of the negative territory for June.
KSE Price Index rose a slim 2.8 points (or 0.03 per cent) to 9,931.6 points. On the broader market for equities, breadth was awkwardly tilted in favour of declining stocks by a margin of 43 to 37. Volume was light in yesterday's trading, with 119.55mn shares exchanging hands on the Kuwait Stock Exchange. The activity was the lightest in over five weeks of trading. Gulfinvest International continued to witness increased investor interest, trading 17.19mn shares. However, profit-taking highlighted the intense trading, driving the scrip down by 8.33 per cent. In news, Arab Real Estate Co received an offer to sell its 49 per cent stake in Gulfa Mineral Water and Processing Industries. The announcement lifted the stock by 2.56 per cent in yesterday's trading.
The advance was broad-based with four out of the eight sectors managing to eke out gains. The Global Services Index spearheaded advancers, up 0.97 per cent. A 6.45 per cent jump in the equity price of IFA Hotels & Resorts bolstered the sector's performance.
The scrip was flat at KD1.200 before riding on the current two-day winning streak, which saw it grow by 10 per cent. Credit Rating & Collection Co too was a notable gainer, edging 5.62 per cent higher. The tone for earnings will definitely set the direction of the market, and that's going to provide some support if its positive. We have seen the worst of the correction, but the road back to the old highs might take us through the summer into the fall. Elsewhere, shares of Kuwait Lebanese Real Estate Development Co. wiped out all the losses incurred during Wednesday's session, adding 5.38 percent. The real estate sector index housed a 0.21 per cent advance.
Separately, shares of Al-Ahlia Investment Co were the biggest percentage gainers, inching 8.33 per cent higher. Volume was at 7.06mn shares. The scrip has grown by 30 per cent since returning to the trading ring on Wednesday. The investment sector as a whole, represented by the Global Investment Index, rose 0.17 per cent.
Meanwhile, companies that offered up weak performances in the day included Aref Investment Group (-8.47 per cent), Salhia Real Estate Co (-7.58 per cent) and Combined Group Contracting Co (-6.85 per cent).
© Kuwait Times 2006
