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KSE index slides 17.8 pts amid volume rebound

By John Mathews Zain slips 10 fils; KFH ends flat
KUWAIT CITY, Dec 22: Kuwait stocks slid Thursday to end week on a dull note. The index shed 17.8 points in volatile trade weighed by moderate selling in some of the heavyweights and mid-priced stocks. The trading floor sentiments were markedly negative even as investors exited positions ahead of the weekend. The bourse wound up at 5,794.30 points after trading briefly in the red earlier in the session, while the weighted index eased 2.37 points to 401.9 points. The volume turnover reached the highest level of the week. 146.87 million shares changed hands - a 41.3 percent rise from Wednesday. Zain fell 10 fils to KD 0.870 after stagnating for most part of the week while Agility eased 5 fils. It closed at KD 0.380 and saw a volume turnover of 0.6 million shares. Wataniya Telecom held the ground unchanged at KD 1.940 with thin trading.

National Bank of Kuwait shed 20 fils extending an identical fall in the day before and closed at KD 1.100 after trading 0.58 million shares. Commercial Bank of Kuwait was down 10 fils at KD 0.760. The counter saw 2 million shares change hands. Among other decliners, City Group dived 50 fils to settle at KD 0.530 and Combined Group Contracting Co shed 2 fils. Heavy Engineering Industries and Shipbuilding Co slid 15 fils while Kuwait Portland Cement and National Industries Co were down 10 fils each. On the upside, Kout Food Group climbed 25 fils and Safwan Trading and Contracting Co rose 20 fils to close at KD 0.540. Contracting and Marine Services Co gained 8 fils whereas National Industries Group held the ground unchanged at KD 0.255 after trading 0.88 million shares.

Flat
The market opened flat and drifted sideways in early trade. The index moved up to chalk the day's highest level of 5819.2 points but eased thereafter amid weak sentiments. It continued to erode and bottomed at 5,783.2 points in the final minutes. However, it managed to trim the losses slightly at close.

Top gainer of the day, Ajwan Gulf Real Estate Co spiked 25.92 percent to 51 fils while Gulf Investment House climbed 8.8 percent to stand next. City Group slid 8.6 percent, the steepest decliner of the day, while Hits Telecom topped the volume with 29.6 million shares.

The market spread was heavily biased towards the decliners. 20 stocks advanced while 48 closed lower. Of the 109 counters active on Thursday, 40 closed flat. 2314 deals worth KD 17.22 million were transacted - a 24.4 percent jump in value from the previous session.

The market had retreated 1.86 percent during November weighed largely by the political developments. "The change in the prime minister and the makeup of parliament could be a positive step in improving the ongoing impasse between the government and parliaments," investment bank EFG Hermes says in a note.

In the banking sector, Ahli United Bank climbed 20 fils to KD 0.820 while Burgan Bank added 5 fils to end at KD 0.465. The stock had shed 15 fils during whole of November and is trading 65 fils lower year-to-date.

Kuwait Finance House was unchanged at KD 0.880 off early lows. Kuwait International Bank fell 5 fils to KD 0.255 whereas Al Ahli Bank stagnated at KD 0.650. Boubyan Bank was steady at KD 0.590 . Gulf Bank stagnated at KD 0.510 after trading in red earlier in the day. Standard & Poor's earlier in the month had upgraded Gulf Bank 's long-term credit rating to BBB, and raised the Bank's outlook from stable to positive.

Investment major KIPCO was flat at KD 0.305 and National Investment Co eased 4 fils to close at KD 0.186. Al Mal Investment Co ticked 2 fils higher on back of 2.7 million shares.

Lower
Bayan Investment Co inched 1 fils lower to 31 fils whereas Al Madina For Finance and Investment Co added 2 fils. Al-Tamdeen Investment Co fell 2 fils. The company has obtained the approval of Capital Market Authority to extend buying back a maximum of 10% of its shares for a period of 6 months ending on April 16, 2012.

Al Imitiaz took in 2 fils to close at KD 0.134. The company has won the Capital Market Authority approval to renew the request granted to the company to buyback or sell up to 10% of own shares over a six month period ending April 16, 2012.

National Real Estate Co closed flat whereas Tamdeen Real Estate Co rose 2 fils to KD 0.228. Mabanee Co shed 10 fils to end at KD 0.870 and Mazaya Holding edged 2 fils lower.

Kuwait Food Co (Americana) was unchanged at KD 1.460 while United Gulf Bank was down 10 fils at KD 0.184. Jazeera Airways stagnated at KD 0.450 after trading 0.45 million shares. to KD 0.450. The company has posted a net profit of KD 6.1 million in third quarter, up 36 percent from last year.

The bourse had been bearish during the week. It closed lower in 3 of the 5 declining 29 points week-on-week. It has eroded 17.3 points so far during the month and is trading 16 percent lower year-to-date. KSE, with 213 listed companies, is the second largest bourse in the region.

In the bourse related news, Al Safat Real Estate Co has posted a net loss of KD 1,435,068 and l oss per share of 5.98 fils in the first nine-months of the year as compared to a net loss of KD 745,249 and loss per share of 3.11 fils in the same period last year. Al Aman Investment Co has posted a net loss of KD 1,581,185 and loss per share 3.3 fils in the nine-month period ending Sep 30. This compares with net profit of KD 738,187 and earnings per share of 1.5 fils in the same period last year.

Kuwait bourse authorities have halted trading in Global Investment House saying its accumulated losses to the end of September had exceeded 75 percent of its capital, contravening market rules.

Global has logged a net loss of KD 54,224,000 and loss per share of 44 fils in the nine-months period ending September 2011 as against net loss of KD 46,241,000 and loss per share of 38 fils in the same period last year.

International Finance Co has posted net loss of KD 4,609,831 and loss per share of 7.42 fils in the first six months of the year as against net loss of KD 3,654,802 and loss per share of 7.86 fils in the same period last year.

© Arab Times 2011