Dull trading activity as KSE sheds 43.2 points
KUWAIT CITY: Kuwait Stock Exchange (KSE) lost 43.2 points after a two-day rebound, edging 0.4 per cent down Monday as selling pressures intensified. The stock market inched up at opening but plunged sharply soon after, losing over 120 points at one point during trading. It mainly traded flat after the first hour, hovering around 11,880. The KSE only recovered at the end, after last minute rally pushed the index back over the 900s and ended the session at 11,918.8 points.
Weak
The weighted index posted its first gain over four days, albeit with weak gains. It closed at 584.7 points, less than 0.1 per cent up during Monday, after services sector heavyweights such as Mobile System Telephone Co (MTC) helped counter other blue chips' slump. Poor performance on the trading floor held investors back. Volume dried up by over one fifth, dipping below 200 millions for the first time over ten sessions. Some 188.7 million shares changed hands, valued at KD 120.6 million. 9,781 deals took place Monday, compared to 13,180 a week ago. It was red across the board, as losses shouldered were broad-based. Market tone remained down. Losers outpaced winners 52 to 31. 39 out of the 136 counters trading during period ended unchanged.
Sector wise too reflect low sentiment. Six out of the eight trading sectors declined this session, again with only services among all the trading sectors making headway. Previous session's sharp gains for Kuwait & GulfLink Transport Co (KGL) did not hold, but telecom heavyweights helped buoy the sector index. On the oil front, crude oil rose for a fourth day in New York on expectations colder weather and US economic growth will boost demand in the world's largest energy user. Crude oil for January delivery rose as much as 56 cents, or 0.9 per cent, to $59.88 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
The contract traded at $59.84 near noon in Singapore. Services, the sole major index to gain this session for the second session, rose 0.6 per cent, extended the sharp rebound made the previous day. The sector index ended the session at 20,306.7 points, as several blue chips staged a turn-around. MTC reclaimed back the 100 fils it lost the day before, ending trading back up to KD 3.720. 834,000 shares were traded Monday. Public Warehousing Co (PWC Logistics) rose a sharp 60 fils up to KD 2.920, ending a three-day losing streak. Sultan Center Food Co meanwhile rose 40 fils up to KD 1.220, on the back of 4.6 million shares changing hands. Kuwait Cable Television moved up another 20 fils to KD 0.320, while National Mobile Telephone Co (Wataniya) likewise added another 20 fils, ending the session at KD 2.540.
Kuwait & Gulflink Transport Co (KGL) and National Cleaning Co, the two counters which led gain the session before, however tumbled sharply. The stocks both retreated 60 fils Monday, to end at KD 1.500 and KD 1.540. Gulf Petroleum Investment (PetroGulf), which had been on a winning stretch of late, closed this session unchanged after reaching KD 0.900. The stock has not declined over twelve sessions, growing one quarter in value during the period. The exchange announced that the company has signed a memorandum of understanding with an Iranian company, owned by the government of Iran, to sell the digger of the company at $ 65 million. The only other sector to gain was non kuwaities, which ceased trading 0.3 per cent up to 8,942.4 points. The sector index recorded sparse volume Monday however. Egypt Kuwait Holding Co's gain of 25 fils helped float the index. The stock closed at KD 0.460, while Ras Al-Khaimah Co for White Cement inched 2 fils up to KD 0.230.
Slipped
Real estate sector slipped 0.8 per cent down, shouldering the sharpest loss following broad based losses. It ended this session at 7,122.1 points. Aayan Real Estate led the losses, bleeding 50 fils to KD 0.680. 9.2 million shares were changing hands, but the resumption of interest failed to support the share price. Also slipping was Grand Real Estate Project Co, which fell 20 fils down to KD 0.910. A'Ayan Real Estate has realized a profit of KD 2.3 million from selling 6 floors from Hajer Tower in Mecca City. A'Ayan Co owns 31.5 per cent stake in Hajer Tower. Ajial Real Estate Entertainment Co could not maintain its sharp advance the session before, falling 20 fils down to KD 0.520. Kuwait National Real Estate Services and Investment slipped 10 fils down to KD 0.310, after 1.6 million shares changed hands. NRE, which fell a steep 60 fils the session before, however recorded a rebound. The counter rose 20 fils up to KD 1.140. Kuwait Lebanese Real Estate Co also clocked in gains, edging 30 fils up to KD 0.600. Trading for both counters swelled to over 4.7 million units.
Investment meanwhile slipped for the second day, to 16,400 points, losing 0.7 per cent Monday. The number of counters closing down was double the counters closing higher.
The steepest loss was shouldered by Aayan Investment Co, which tumbled 50 fils down to KD 0.860. 3.0 million shares changed hands, extending its Sunday losses. National Investment Co slipped 20 fils down, as did The Investment Dar. The stocks ceased trading at KD 1.220 and KD 1.900 each. Kuwait Financing and Investment Co and Coast Investment & Development Co too slipped 20 fils, to end the session at KD 1.200 and KD 0.490. Kuwait Financial Center (Markaz) meanwhile closed at KD 0.780, 10 fils lower, on the back of heavier trading of 6.4 million shares, its second day of losses after sharp gains the week before. Losses however were offset by the gains made by the heavily traded Bayan Investment Co. Bayan edged up 20 fils, its first gain in nine sessions. The stock moved some 7.8 million shares during trading.
KIPCO Asset Management likewise gained. The stock extended its strong momentum, clocking in another 30 fils this session to end at KD 0.880. Housing Finance Co inched 5 fils up to KD 0.280, as trading spiked to 12.8 million shares. Industrial stocks similarly failed to float their sector index after counters like National Industries Group Holding Co fell. The sector headliner lost 20 fils, as did United Industries Co (UIC) and Kuwait Cement Co. National Industries ended the session at KD 1.980, after 1.5 million shares changed hands. UIC closed at KD 0.620, while Kuwait Cement ended at KD 1.260. Equipment Holding Co meanwhile inched 5 fils down to KD 0.455, after 1.5 million shares traded. Meanwhile, the National Industries for Building Materials slipped for the first time in five days. It ended at KD 0.800 Monday, 20 fils lower. Its board has approved its plan to increase paid up capital by half, at 500 fils per share.
Closed
Banking fell 0.5 per cent to 8,964.9 points, as National bank of Kuwait and Commercial Bank of Kuwait both shed 20 fils. The stocks closed at KD 2.360 and KD 1.220. Kuwait Finance House however helped offset the losses. The stock ended its two-session sharp decline, when it inched up 20 fils this session. KFH closed at KD 2.380. Food stocks meanwhile lost 0.8 per cent to 4,991.3 points, as Kuwait Food Co slipped 20 fils down to KD 1.980, after just one single trade.
By Maisara Ismail
© Arab Times 2005
