• Home
• News Article

KSE impetus fizzles off

KUWAIT: Kuwait Stock Exchange (KSE) failed to follow the Saudi and international markets' momentum and ended the first trading session of the week on a weaker note. Only a few stocks managed to close the day at higher prices while large capitalization stocks were either down or flat. Global General Index (GGI) ended the session down by 0.78 percent at 181.24 point. Market Capitalization was down for the day reaching KD29.63bn. On the other hand, KSE Price Index closed at 5,853.30 point, shedding 0.75 percent from its previous close.

Market breadth
During the session, 97 companies were traded. Market breadth was skewed towards decliners as 48 equities retreated versus 20 that advanced. Trading activities also went down on Sunday. Total volume traded retreated by 16.86 percent with 163.1mn shares changing hands at a total value of KD26.3mn (27.95 percent lower compared to Thursday's session). Investment sector was the volume leader. The sector accounted for 33.66 percent of total shares exchanges. International Financial Advisors (IFA) was the most traded stock in the sector with 18.9mn shares exchanged. The banking sector was the value leader, having 48.89 percent of total traded value. Gulf Bank toped the value leaders list of the day with a total value of KD12.1mn.

In terms of top gainers, Equipment Holding Company was the top gainer for the day, adding 9.62 percent to its share value and closing at KD0.057. On the other hand, Kuwait National Cinema Company shed 8.33 percent and closed at KD0.990 making it the biggest decliner in the market.

Sectors-wise
Banking stocks were major decliners, with Global Banking Index losing 1.09 percent of its value. Five of the Kuwaiti banks stocks lost some value with Commercial Bank of Kuwait losing the most, down by 2.53 percent. Heavyweights, National Bank of Kuwait and Kuwait Finance House were also seen down by 1.72 percent and 1.11 percent, respectively.

The sector was the most value traded for the day, accounting for almost 49 percent of the value traded (KD12.7mn worth of shares traded). Alone, Gulf Bank saw KD12.1mn worth of shares traded (23.64mn shares exchanged) but ended the day flat at KD0.510.

Services Sector Index was the second biggest loser, shedding 0.85 percent of its value. Heavyweight telecom stocks negatively weight on the index. Zain stock lost 1.10 percent of its value, closing at KD0.900 while Wataniya Telecom ended the day down by 1.02 percent at KD1.940. The industrial sector followed, losing 0.79 percent of its index value. National Industries Group (Holding) was the biggest decliner in the sector, down by 3.70 percent. On the other side, Equipment Holding Company topped the gainers list for the day, adding 9.62 percent to its share value.

The same sector witnessed the de-listing of Gulf Rocks Company. Based on the results of the Ordinary Annual General Meeting held on December 14, 2010, the company announced its final withdrawal from Kuwait Stock Exchange . It also announced the suspension of trading of its shares starting from December 11, 2011 due to weak trading on its stock.

Corporate news
Further to its previous announcement dated October 10, 2011 on the capital call of National Cleaning Company (NCC), Kuwait Stock Exchange (KSE) declares that the company re-opened subscription to the remaining shares during the period from Wednesday, November 30, 2011 till December 11, 2011. Shareholders of record on October 11, 2011 have the right to subscribe to the secondary offering effected on KCC.

STC Group announced that it will begin procedures to list the shares of Kuwait Telecom Company ( VIVA ), an STC Group Company in the Kuwaiti Stock Exchange. This listing is an execution of the Amiri Decree number 187/2007 following the rules and regulations of the Kuwaiti Stock Exchange allowing customers to trade their stocks in the Kuwaiti Stock Exchange. STC Group CEO, Eng Saud bin Majed Al-Daweesh highlighted that the agreement was concluding at VIVA headquarter with NBK Capital to manage the listing. Combined Group Contracting Company (CGC) announced that its Abu Dhabi-based branch was awarded tender No C-10004-004 CMW, worth AED58.2mn (nearly KD4.4mn), by the General Command of UAE

Armed Forces in Abu Dhabi. Under the seven-month project, CGC will carry out the execution of concrete floors, sewage network and two pumping plants in Ghantout, UAE. In another news, KSE announced that CGC has been awarded tender No KS/T/262 by the Ministry of Public Works (MPW), as posted on the website of Central Tenders Committee. Under the KD3mn worth of tender, the contractor will undertake the general maintenance of high ways in Kuwait over two years. Amar Financing and Leasing Company has sold an investment property in Kuwait for KD1.95mn.

Accordingly, it generated KD310,000 profit, which will be reflected on its 4Q2011 consolidated financial statements. Strategia Investment Company reported on KSE repaying its total liabilities reaching KD2.5mn to a local lender, in addition to due interests. Accordingly, the company has paid off its due liabilities up to date.

© Kuwait Times 2011