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Dec 26 2011

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KSE benchmark slips 1.1 pts in volatile trade

Zain falls 10 fils; NBK stagnates
KUWAIT CITY: Kuwait stocks trod water Monday, after posting modest gains in the previous session. The index inched 1.1 points lower in volatile trade weighed by selling in Zain and some of the mid caps even as other blue chips closed mostly muted. The trading floor sentiment was skittish as investors eye the political developments. The bourse wound up at 5801.40 points off early highs while the weighted index fell 0.53 points to settle at 402.84. The volume turnover fell further as investors remained wary of taking up fresh positions. 108.68 million shares changed hands - down 4.8 percent from the day before. Among prime movers, Zain fell 10 fils erasing the gains on Sunday. It closed at KD 0.870 and saw a volume turnover of over 3 million shares. The telecom service provider has posted a net profit of KD70 million in the third-quarter despite a drop in revenue.

Agility held the ground unchanged at KD 0.380 after trading in red earlier in the session and Wataniya Telecom followed suit to wind up at KD 1.940. The stock has climbed 40 fils so far during the month and is up by same measure year-to-date. Gulf Glass Manufacturing Co plunged 100 fils, the maximum permitted single day loss to close at KD 1.220 and Kuwait Portland Cement was down 20 fils at KD 0.800. Kuwait Cement shed 25 fils with a volume of 1.15 million shares and Gulf Cables slipped 20 fils.

Rose
On the upside, Combined Group Contracting Co jumped 40 fils and IFA Hotels and Resorts rose 10 fils . Kuwait Food Co ( Americana) climbed 20 fils to KD 1.480 with thin volume. The stock has added 20 fils from start of the month and is trading 160 fils lower year-to-date.

The market opened weak and slipped briefly into a shallow trough in early trade. The index rebounded thereafter on speculative buying in select counters and peaked at 5817.4 points. It retreated thereafter as sentiment weakened and slid into red almost half way into trading. The market drifted lower in the final minutes to bottom at 5787.7 points and managed to trim the losses at close.

Top gainer of the day, Kuwait Cinema soared 7.07 percent to KD 1.060 while Argan Real Estate climbed 6.6 percent to stand next. Gulf Glass slid 7.5 percent, the steepest decliner of the day, while Abyaar Real Estate topped the volume with 22.56 million shares.

The market spread was biased towards the losers. 21 stocks advanced while 30 closed lower. Of the 101 counters active on Monday 49 closed flat. 1564 deals worth KD 19.97 million were transacted - down 20.7 percent from the day before.

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 said in a note.

In the banking sector National Bank of Kuwait was flat at KD 1.120 after trading in red earlier in the day and Gulf Bank followed suit to close at KD 0.500 with a volume of 1.1 million shares. Standard & Poor's early in the month has upgraded Gulf Bank 's long-term credit rating of BBB- to BBB, and raised the Bank's outlook from stable to positive.

Commercial Bank rose 10 fils on back of 9.04 million shares whereas Al Ahli Bank stagnated at KD 0.650. Ahli United Bank eased 10 fils to KD 0.810 whereas Kuwait International Bank was flat at KD 0.255. KIB's net earnings stood at KD 8.2 million in the third quarter and KD 4.7 million was allocated in provisions.

Eased
Burgan Bank stagnated at KD 0.455 off early highs and Kuwait Finance House too did not budge from its previous close of KD 0.890. The stock has eased 10 fil so far during the month and has erased 270 fils year-to-date. Boubyan Bank was unchanged at KD 0.590.

International Financial Advisors inched 0.5 fils lower whereas National Investment Co was not traded during the session. KIPCO was unchanged at KD 0.305 . The company has chalked a 73 percent decline in third-quarter profit. Kuwait Financial Centre eased 2 fils and First Investment Co followed suit to end at KD 0.108.

ALAFCO rose 5 fils whereas Jazeera Airways was down 10 fils at KDD 0.440. The company has posted a net profit of KD 6.1 million in third quarter, up 36 percent from last year while in the first nine-months the earnings stood at KD 9.2 million.

The bourse has been subdued so far during the week and has added 9.1 points from close of last week. It has retreated 10.2 points from start of the month and is trading 16 percent lower year-to-date. KSE, with 213 listed companies, is the second largest bourse in the region.

The bourse has been range bound so far during the week and has eased a marginal 0.5 points from end of last week. It is up 10.5 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 loss 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.