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KSE index inches 3.2 pts lower as volume recedes

By John Mathews NBK sheds 20 fils; Zain up 10 fils
KUWAIT CITY, Jan 11: Kuwait stocks edged lower Wednesday after staging a rebound in the previous session. The index eased 3.2 points in slightly volatile amid profit taking in select heavyweights and some of the mid-priced stocks. The trading floor sentiment remained cautious as investors digest the earnings estimates. The bourse wound up at 5,717.10 points off early highs while weighted index inched 0.72 points lower to settle at 398.36. The volume turnover receded slightly after hitting the month's highest level so far during the month. 229.12 million shares changed hands - down 16.5 points from Tuesday. KSE had edged 0.04 pct in December and has tumbled 17 percent during whole of 2011.

Zain added 10 fils on back of 1.15 million shares to close at KD 0.870 while Wataniya Telecom was not traded during the session. The stock had gained 40 fils during whole of 2011 and is down 20 fils from start of the month. Agility eased 5 fils to close at KD 0.375 reversing the gains on Tuesday and saw a volume turnover of 0.75 million shares. The logistics service provider earlier in December had bid about KD 25.6 million to acquire a strategic stake in Kuwait Health Assurance Co. National Bank of Kuwait shed 20 fils erasing the gains on Tuesday. It wound up at KD 1.120 and saw a volume turnover of 1.35 million shares. Ahli United Bank was down 10 fils at KD 0.810 whereas Kuwait Finance House held the ground unchanged at KD 0.870. Saudi unit of Kuwait Finance House , has earned 360 million riyals profit from the sale of a real estate project in the kingdom.

Dropped
Among other decliners, Combined Group Contracting Co dropped 20 fils to KD 1.500 while Jazeera Airways and ALAFCO were down 5 fils each at KD 0.465 and KD 0.285 respectively. United Gulf Bank ticked 2 fils higher to KD 0.210. The lender had announced obtaining approval of Bahrain Central Bank to buy back up to 5% of Bank's issued shares as treasury bonds. On the upside, Kuwait Cinema Co spiked 100 fils, the maximum permitted single day gain, to close at KD 1.100 and Gulf Cables climbed 40 fils with thin trading to close at KD 1.420. Hits Telecom has up 5 fils on back of 24.5 million shares to wind up at 76 fils. The market opened on choppy note and edged higher in early trade. The index hit the day's highest level of 5,734.4 points but failed to hold on to the gains.

It eased thereafter and slipped below the red past the mid-session. It bottomed at 5,712.3 points and managed to trim the losses at close. Top gainer of the day, Safat Real Estate Co soared 23.8 percent to 13 fils while Kuwait Cinema climbed 10 percent to stand next. Gulf Petroleum Investment Co slid 7.6 percent, the steepest decliner of the day, while Kuwait Business Town Real Estate Co topped the volume with 40.4 million shares. The market spread was skewed towards the losers. 28 stocks advanced while 36 closed lower. Of the 99 counters active on Wednesday, 34 closed flat. 2,715 deals worth KD 23.04 million were transacted - down 8.8 percent in value from the day before.

In the banking sector, Gulf Bank fell 5 fils to KD 0.490. Standard & Poor's early in December 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 of Kuwait and Al Ahli Bank were not traded during the session while Kuwait International Bank closed flat.

Burgan Bank was off early lows to stagnate at KD 0.465. The stock had shed 55 fils during the whole of 2011 and is trading 10 fils lower from start of the month. Boubyan Bank held the ground unchanged at KD 0.590.

National Investment Co dropped 6 fils whereas KIPCO climbed 10 fils on back of 1.97 million shares. Kuwait Financial Centre slipped 2 fils and Al Maal Investment Co inched 0.5 fils higher.

Flat
Bayan Investment took in 0.5 fils while Al Tamdeen Investment Co closed flat. 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.

National Industries Group shed 10 fils after trading 4.24 million shares to close at KD 0.222 whereas Kuwait Pipes was flat at KD 0.128. Kuwait Portland Cement and United Industries Co both were unchanged at the earlier close and Boubyan Petrochemical followed suit.

The bourse had been trending lower so far during the week and has dropped 9 points from last week's close. The index has tumbled 97.1 pts so far during the month after shedding 17 percent during whole of 2011. KSE, with 213 listed companies, is the second largest bourse in the region.

In the bourse related news, KSE has lifted the ban on trading of Ekttitab Holding Co's share with effect from Jan 4, 2012. This move follows the fall in shareholders' holding following the reduction of capital from KD 51,700,000 to KD 22,862,423.

The bourse authorities have announced suspension of Burgan Well Drilling Co with effect from Jan 2, 2012 for failing to pay annual membership fee for 2011/2012.

KSE listed companies have logged a 3.2 percent decline in third quarter profit to hit KD 923 million, according to Al Joman Center for Economic Consultancy. Investment sector, the biggest decliner, saw a 98 percent drop in earnings followed by the real estate sector which eroded 19 percent.

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 of 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.

© Arab Times 2012