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Kuwait bourse jumps 29.8 pts as volume surges

By John Mathews Wataniya Telecom up 20 fils; Zain retreats
KUWAIT CITY, Jan 12: Kuwait stocks rebounded on Thursday to wind up week on a positive note. The index jumped 29.8 pts after a wobbly start amid strong buying in some of the mid an small caps even as blue chips closed narrowly mixed. The sentiment was upbeat even as investors await the earnings.

The bourse wound up at 5,746.90 points off early lows while the weighted index inched 0.5 pts higher to 398.86. The volume turnover rose sharply to a 4-month high after receding in the previous session. 318.86 million shares changed hands - a 39.2 percent surge from Wednesday. International Financial Advisers added 2.5 fils on back of 14.8 million shares whereas National Investment Co inched 2 fils lower to KD 0.162 after trading 2.06 million shares. First Investment Co rose 2 fils while Bayan Investment and Al Deera Holding Co were up 1.5 fils each to end at 30.5 fils and 29 fils respectively.

Wataniya Telecom rose 20 fils to KD 1.940 whereas Zain fell 10 fils to KD 0.860 erasing the gains on Wednesday. Agility held the ground unchanged at KD 0.375. The logistics service provider earlier in December had bid about KD 25.6 million to acquire a strategic stake in Kuwait Health Assurance Co.

Among other gainers, Jazeera Airways rose 10 fils to settle at KD 0.475 while ALAFCO was up 5 fils on back of 2.33 million shares. United Projects Group climbed 15 fils and Egypt Kuwait Holding Co edged 5 fils higher to KD 0.255.
Combined Group Contracting Co gained 20 fils recouping the loss in the day before. The company has signed a 3-year contract worth $94,021,914 with The Ministry of Communications in The Republic of Tajikistan. IFA Hotels and Resorts added 5 fils on back of 0.5 million shares.

Lower
National Industries Group held the ground unchanged at KD 0.222 after trading while Kuwait Pipes ticked 2 fils lower. Gulf Cables shed 20 fils and Kuwait Portland Cement was down 10 fils at KD 0.710. The market opened weak and slipped into a shallow trough in early trade. The index hit the day's lowest level of 5,706.8 points and clawed back thereafter as buying resumed at some of the counters. It continued to head north and closed with modest gains.

Top gainer of the day, Al Safwa soared 13.79 percent to 16.5 fils while Investors Holding Group rose 9.09 percent to stand next. Kuwait Insurance Co slid 7.6 percent, the steepest decliner of the day while Safat Energy topped the volume with 35.68 million shares.

In the banking sector, National Bank of Kuwait closed flat at KD 1.120 after trading in red earlier in the session and Gulf Bank followed suit to end at KD 0.490 with a volume turnover of 3.49 million. Standard & Poor's early in December 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 stagnated at KD 0.770 with thin volume whereas Al Ahli Bank was not traded during the session. Ahli United Bank added 20 fils more than recouping the drop on Wednesday. Fitch Ratings has affirmed AUB'S Long-term Issuer Default Rating (IDR) at 'BBB+' and Viability Rating (VR) at 'bbb+'. The Outlook on the Long-term IDR is Stable.

Kuwait International Bank eased 2 fils to KD 0.242 after trading 1.42 million shares while Burgan Bank closed flat at KD 0.465. The stock had shed 55 fils during 2011 and is trading 10 fils lower from start of the month.

Kuwait Finance House fell 10 fils to settle at KD 0.860 after stagnating on Wednesday. Saudi unit of Kuwait Finance House, has earned 360 million riyals profit from the sale of a real estate project. Boubyan Bank was off early lows to close unchanged at KD 0.590.

Climbed
Al Madina For Finance and Investment Co climbed 3.5 fils while Al Imitiaz Investment Co gained 10 fils on back of 4.04 million shares. Al Tamdeen Investment Co was not traded during the session. 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 Real Estate Co closed flat at KD 0.122 and Al Enmaa Real Estate followed suit to wind up at 98 fils. Mabanee Co rose 10 fils and Al Mazaya Holding Co was up 3 fils at 63 fils.

The bourse has been mixed during the week. It closed higher in 2 of the 5 sessions and gained 20 pts week-on-week. The index has shed 67.3 pts so far during the month after eking marginal rise in the previous month. KSE, with 213 listed companies, is the second largest bourse in the region.

In the bourse related news, Alargan International Real Estate Co. announced obtaining the Money Markets Authority to issue bonds up to KWD 26.5 Mill divided over 2 portions with a maturity of 5 years.

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 3.3 fils in the nine-month period ending Sept 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