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KSE index retreats 3.2 pts, snaps ten-day gains

Zain falls 20 fils; Agility climbs 25 fils
KUWAIT CITY, Sep 12: Kuwait stocks retreated Monday, snapping the 10-day gaining streak. The index slipped 3.2 points in volatile trade weighed by Zain and select bank stocks. Some of the mid-caps too sagged on selling pressure even as trading floor sentiments remained cautious. The bourse wound up at 5,977 points paring steeper losses earlier in the day, while the weighted index inched 0.43 pts lower. The volume turnover rebounded after receding in the previous session. 230.3 million shares were transacted -- a 18.6 pct increase from Sunday. The benchmark had hit a 7-year low on Aug 21 amid weak regional and global cues. Market heavyweight Zain retreated 20 fils to KD 0.970 after stagnating in the previous session and saw a volume turnover of 0.95 million. The stock saw moderate rally last week on rumors that telecom firm is making progress in selling its stake in Zain Saudi.

Agility rose 25 fils adding to an identical gain in the previous session and wound up at KD 0.320. The counter saw 5.78 million shares change hands. The stock was buoyed by media reports that the company is leading an alliance to bid for Kuwait Airways stake. Wataniya Telecom however was unchanged at KD 1.980 whereas Kuwait Gulf Links slipped 2 fils to close at KD 0.108. The stock had slid 19.35 percent during August but is trading 8 fils higher so far during the month. Burgan Bank eased 5 fils to KD 0.485 and Kuwait International Bank followed suit to wind up at KD 0.485 after closing higher in the previous session. KIB saw 2.23 million shares change hands.

Dropped
Among other notable losers, Gulf Cables dropped 20 fils to settle at KD 1.580 after stagnating in the previous session. Kuwait Food Co (Americana) too was down 20 fils at KD 1.500 and Combined Group followed suit to wind up at KD 1.420. The market opened flat and moved sideways in early trade as investors toed the line. The index crept higher thereafter to peak at 59881 points but failed to hold on to the gains. It slid to bottom at 5955.8 points amid selling in select counters but managed to pare the losses to a great extent in the final minutes. Top gainer of the day, Munshaat Real Estate Projects soared 10.41 percent to 26.5 fils and Al Maal climbed 9.8 percent to stand next. Kuwait Cable Vision Company dived 6.8 percent, the steepest decliner of the day, while Sokouk Holding topped the volume with 23.36 million shares.

Mirroring the day's decline, the losers outnumbered the winners. 29 stocks advanced while 41 closed lower. Of the 104 counters active on Monday, 33 closed flat. 3,469 deals worth KD 20.71 million were transacted -- down 8.8 percent in value from the previous session. Banking sector major National Bank of Kuwait stagnated at KD 1.080 after trading lower earlier in the day. NBK was pressured earlier last week after Goldman Sachs slashed its price target on the bank's stock to KD 1.39 from KD 1.53. Al Ahli Bank added 10 fils to end at KD 0.640 whereas Gulf Bank was flat at KD 0.510. Gulf Bank has inked a deal with Noor Financial Investment to reschedule Noor's credit debts amounting to KD 62.5 million for 6 years ending June 30, 2017. Ahli United Bank climbed 30 fils to KD 1.000 whereas Commercial Bank was not traded during the session. Moody's earlier in August had affirmed the D+ standalone bank financial strength rating (BFSR) and A2/Prime-1 local and foreign-currency deposit ratings to Commercial Bank.

Slipped
Investment heavyweight KIPCO slipped 5 fils while National Investment Co held the ground unchanged at KD 0.204 after trading 5.28 million shares. Kuwait Financial Centre added 4 fils to wind up at KD 0.112. International Financial Advisors crept 2.5 fils up on back of 10.64 million shares. The company has posted a first half net loss of KD 3,822,539 and loss per share of 5.70 fils as against net loss of KD 11,688,074 and loss per share of 17.86 fils in the same period last year. Al Maal Investment rose 5 fils with a volume of 7.48 million shares and Bayan Investment added 2.5 fils. Global Investment House Co took in 2 fils to end at 36.5 fils. The stock had dropped 9.68 percent in August but is trading 8.5 fils higher since start of the month. National Industries Group closed flat at KD 0.212 whereas Heavy Engineering Industries and Shipbuilding Co climbed 10 fils. Kuwait Pipes eroded 4 fils. The firm has recorded a first half net loss of KD 4,591,910 and loss per share of 20.39 fils.

The bourse had been positive so far during the week and has gained 15 points from close of last week. The benchmark has soared 186 points so far during the month and is trading 14 percent lower year-to-date. KSE, with 213 listed companies, is the second largest bourse in the region. In the bourse related news, Gulf Finance House has posted KD 193,670 net profit in the first half of 2011 while earnings per share chalked 1 fil. This compares with a net loss of 13,115,943 and loss per share of 29 fils in the same period. Strategia Investment Co has posted a net profit of KD 441,289 and earnings per share 2.94 fils in the first half of 2011 as against net loss of KD 122,613 and loss per share of 8.2 fils in same period last year. Jeeran Holding Co has logged KD 754,365 earnings in the 3 months ended 31 May, 2011 and earnings per share stood at 5.51 fils as against net profit of KD 469,187 and earnings per share of 3.43 fils in the same period in 2010.

Meanwhile KSE has announced the suspension of shares of 38 companies with effect from Aug 16, 2011 for failing to submit the financial results in the stipulated time. They include, International Financial Advisors, Coast Investment and Development Company, International Investor Company, Securities House Company, Industrial and Financial Inv Co, Securities Group Company, International Finance Company, Kuwait and Middle East Fin Inv Company, International Investment Group, Aref Investment Group, Investment Dar Company, Al Aman Investment Co, First Investment Co, Aayan Leasing and Investment Company, GulfInvest International Co, Kuwait Financing and Investment Co, International Leasing and Investment Co, Al Madar Finance and Investment Co, Al-Safat Investment Co, Noor Financial Investment, Al-Qurain Holding Co, Strategia Investment Co, Al-Masar Leasing and Investment Co, Al Dar National Real Estate Co, Grand Real Estate Projects Co and Safat Global Holding besides other cos.

© Arab Times 2011