Kuwait's bourse index plunges by 182 points
KUWAIT CITY: Kuwait Stock Exchange (KSE) witnessed intensifying sell-down Sunday, tumbling a sharp 1.5 per cent after a session of broad losses. This is the sharpest single day losses sustained by the index since the end of May, some half a year ago. During its fifth straight day of losses, the index went on an unbroken slide since the opening bell. The KSE bled as much as 208 points at one point, but a last minute rally helped cap losses at 181.8 points. The larger index ended trading at 11,591.4 points, while the weighted index, dragged down by the thrashing shouldered by blue chips, also closed 1.5 per cent lower to 567.2 points.
Sharp
The sharp loss in the KSE was mirrored by all the GCC stock markets trading Sunday. Dubai shouldered the sharpest loss, bleeding over 3.0 per cent in a single session. Since the market reversed a week ago after recording its longest winning streak this year, it has lost some 2.5 per cent in value. A correction was expected: the KSE have grown by one fourth in the last three months. It is now trading 80.8 per cent higher than it did at the start of the year. It was red all across the board Sunday: losers outpaced gainers a whopping nine times. Of the 124 counters traded this session, 94, or three quarter of them ended lower. A mere ten counters made gains, while the other 20 remained unchanged. Seven out of the nine trading sectors declined. All major indices witnessed sharp retreat, led by the 2.2 per cent tumble posted by the investment sector and the 1.9 per cent drop in real estate sector.
Even banking, which posted a sharp rebound the session before, lost back almost all the gains it made Sunday.
Accordingly, the market turnover continued to dry up, as some investors wait on the sidelines while the market ride over the correction phase. The total volume, already dropping by some one third the session before, fell 13 per cent lower to 181.8 million units, less than half of the volume recorded a week ago. It was also the first time volume fell below 200 million since Oct 15. 8,244 deals took place, valued at some KD 106 million.
On the oil front, cold weather in the Northern Hemisphere may cause crude oil to rise as demand for heating fuel jumps, a survey by Bloomberg showed. Twenty-five of 56 analysts surveyed, or 45 per cent, said prices will increase next week. It was the first bullish forecast since the week ended Oct 14. Crude oil for December delivery rose as much as 26 cents, or 0.5 per cent, to $56.60 a barrel in electronic trading on the New York Mercantile Exchange Friday.
On Thursday, the contract fell $1.54, or 2.7 per cent, to $56.34 a barrel, the lowest close since June 16. The international market for oil trade is closed on Saturdays and Sundays.
Investment index was the worst casualty of Sunday's sell-down, boasting only a single gainer. Its 2.2 per cent drop was headed by the 60 fils drop in Kuwait Financing & Investment Co. The stock ended the session at KD 1.140, while the sector index, which suffered its fourth decline over five days, tumbled to 15,923.1 points. International Financial Advisor (IFA) and International Investment Group (IIG) shed 40 fils each. IFA, which had a spectacular October, has seen its share price reversing in recent weeks. The stock is now traded at KD 2.440, close to 7.0 per cent lower than at the start of the month. IIG meanwhile fell to KD 0.810. Also losing was The International Investor, which recorded heavy trading at 6.2 million shares. The counter closed 30 fils lower to KD 0.510. Al Mal Investment Co too shed 30 fils to end down at KD 0.750 after 5.0 million shares changed hands. Al Maal decided to raise the company's capital at the ordinary & extraordinary General Assembly scheduled to be held on Dec 10, by 25 per cent. It will issue 91.9 million shares valued at @100 fils, at a premium of 200 fils per share.
Slipped
Aayan Investment Co slipped 30 fils, as did International Leasing & Investment Co. The counters closed the session at KD 0.800 and KD 0.690 respectively. Osoul Leasing Finance Co, the most heavily traded stock on the index, slipped 10 fils down to KD 0.335 after 9.3 million shares traded. The sole advancer on the index was National International Co, which inched 5 fils up to KD 0.335. Global Investment Co and Bayan Investment Co meanwhile ended the session unchanged at KD 2.680 and KD 0.650 each. The real estate index did not fare much better. It closed at 7,114.4 points, or 1.9 per cent down from the session before.
Only two counters managed to record a gain, namely best performer of the session Aayan Real Estate and Ajial Real Estate Entertainment Co. Aayan Real Estate clocked in 50 fils, or 8.6 per cent increase, to KD 0.630, while Ajial rose 40 fils to KD 0.550. 5.1 million and 3.7 million share units were changing hands for respective counters. The rest of the index failed to advance. Leading the sector decline was the 40 fils drop in Jeezan Real Estate. The stock tumbled down to KD 0.790, while one of the worst performers of the day, Kuwait National Real Estate Services and Investment Co, slipped 20 fils down to KD 0.405, after 4.7 million shares traded. Sector headliner National Real Estate Co slipped 20 fils down to KD 1.080, while Arab Real Estate Co, once again the most traded stock during the session, slipped 5 fils down to KD 0.295. The counter registered some 27.7 million share units bought and sold during the session.
Al Mazaya Real Estate Co and Grand Real Estate Project Co meanwhile both tumbled 30 fils down to KD 0.770 and KD 0.780 each. Meanwhile, the 1.6 per cent slip in the industrial index was spearheaded by heavyweight National Industries Holding Co. The stock tumbled a sharp 60 fils down to KD 1.660, after some 1.3 million shares traded, wiping out the rebound it recorded the session before. Gulf Rocks Co too suffered a sharp blow, slipping 80 fils down to KD 1.280 after solitary trade. Kuwait Cement Co dropped 40 fils down to KD 1.160, also after a single transaction. Boubyan Petrochemical likewise fell 40 fils down to KD 1.060, after 1.0 million shares changed hands.
Losses however was partially offset by the 100 fils gain in Metal & Recycling Co, which extended its 200 fils jump on Saturday. The counter, whose majority stake is held by Public Warehousing Co (PWC Logistics), moved up to KD 1.980. The sector ceased trading at 7,106.3 points, while services, which tumbled 1.3 per cent, ended at 19,162.4 points. Its sole advancer was PWC Logistics. The counter, which reversed its four-day losses, inched up 20 fils to end at KD 2.820. Most other heavyweights failed to resist the continuous sell down. Sultan Center Food Co slipped 20 fils, while Mobile System Telephone Co slipped 40 fils down. The stocks ended the session at KD 1.160 and KD 3.380 respectively. MTC's capital boost takes place from Nov 16 to 30. The capital boosting exercise, which will double the company's capital, offered 543 million new shares with a par value of 100 fils and a premium of KD 1.150. The expected proceeds will be a total of KD 687 million.
Extend
Its competitor National Mobile Telephone Co (Wataniya) could not extend its gain made the previous session, falling back 20 fils to KD 2.380. National Cleaning Co fell 40 fils to KD 1.360. The banking index, which rallied back 0.8 per cent up this session, lost all the gain to fall back to 8,901.5 points. In a reverse of Saturday's session, Kuwait Real Estate Bank was its sole gainer, moving up 50 fils after it resumed trading following Saturday's suspension, to end the session at KD 0.740. National Bank of Kuwait suffered the sharpest slide, losing 60 fils to end Sunday at KD 2.320. Gulf Bank erased the strong 60 fils gain it made Saturday when it tumbled 40 fils down to KD 1.440. Kuwait Finance House too lost 40 fils, ending the session at KD 2.480. Some 1.4 million shares were changing hands that session.
By Maisara Ismail
© Arab Times 2005
