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Kuwait bourse gains 11 pts in volatile trade

By John Mathews Wataniya Telecom sheds 20 fils; Zain up 10 fils
KUWAIT CITY, Jan 18: Kuwait stocks covered more ground on Wednesday, extending the gains to the second straight session. The index rose 11 points in volatile trade led by select heavyweights even as banks remained subdued. The trading floor sentiment was skittish as investors await the earnings.

The bourse wound up at 5,800.40 pts off early highs while the weighted index inched 0.17 pts lower to 404.12. The volume turnover receded below the 300 mln mark after hitting a multi-month high in the previous session. 281.14 million shares changed hands - down 26.5 percent from Tuesday. After closing 0.04 percent higher in December, KSE has been upbeat so far during the week.

Zain rose 10 fils to KD 0.870 after stagnating in the previous session while Agility added 5 fils on back of 0.75 million shares to end at KD 0.360. 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 notable gainers, Safwan Trading and Contracting Co jumped 40 fils to KD 0.560 and Kuwait Food Co (Americana) climbed 20 fils to KD 1.480. The stock rose 20 fils during December and is unchanged from start of the month.

United Gulf Bank rose 8 fils to KD 0.214 while Egypt Kuwait Holding Co was up 5 fils extending an identical rise in the day before. Kuwait Remal Real Estate Co climbed 25 fils while Heavy Engineering Industries and Shipbuilding Co gained 20 fils.

On the downside, National Bank of Kuwait shed 20 fils to KD 1.140 after trading 1.53 million shares. The investment banking arm of the lender, NBK Capital, is selling its stake in Saudi fleet leasing and car rental firm Hanco. Kuwait Finance Co eased 10 fils and Al Ahli Bank followed suit to wind up at KD 0.650.

Gains
Wataniya Telecom however retreated 20 fils to KD 1.960 snapping the gains in the previous two sessions. The stock had added 40 fils during whole of 2011 and is up 20 fils so far during the month.

The market opened choppy and pulled higher in early trade. The index continued to rise amid moderate buying in select counters to hit the day's highest of 5,787.8 points. It retreated thereafter as profit booking kicked in and slipped below the red past the mid-session. The market traded sideways in the final hour before ticking higher at close.

Top gainer of the day, Ekttitab Holding Co climbed 8.4 percent to 64 fils while Al Madina For Finance and Investment Co rose 8.3 percent to stand next. Aayan Real Estate Co slid 8.6 percent, the steepest decliner of the day and International Financial Advisors topped the volume with 28.16 million shares.

Reflecting the day's gain, the winners outled the losers. 44 stocks advanced while 30 closed lower. Of the 106 counters active on Wednesday, 31 closed flat. 3,962 deals worth KD 28.21 million were transacted - down 28.2 percent in value from the day before.

In the banking sector, Gulf Bank closed flat at KD 0.495 after trading 1.25 million shares while Commercial Bank of Kuwait was not traded during the day. The stock had slid 130 fils during whole of 2011 and is down 20 fils from start off the month. Boubyan Bank was steady at KD 0.590.

Kuwait International Bank climbed 6 fils on back of 3.12 million shares whereas Burgan Bank and Al Ahli Bank stagnated at KD 0.465 and KD 0.910 respectively. 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.

Investment major KIPCO was unchanged at KD 0.315 off early lows while National Investment Co ticked 2 fils lower to KD 0.162. The company has won Money Markets Authority's approval to buy back 10% of own shares over 6 month period commencing January 3, 2012 till July 3, 2012.

Eased
Kuwait Financial Centre Co (Markaz) eased 2 fils to KD 0.108 while International Financial Advisers inched 1 fils higher. First Investment Co rose 4 fils on back of 5.3 million shares and Bayan Investment Co edged 2 fils higher.

Tamdeen Investment Co slipped 2 fils to KD 0.158. 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 added 2 fils with a volume of 2.2 million shares whereas Sanam Real Estate and Aayan Real Estate eased 5 fils each. Mazaya Holding Co held the ground unchanged at 63 fils. National Industries Group was flat at KD 0.224 after trading 3.3 million shares and Kuwait Pipes too did not budge from its earlier close of KD 0.126. Gulf Cables was unchanged at KD 1.440 whereas Kuwait Cement Co added 10 fils.

The bourse has been positive so far during the week and has gained 53.5 pts from close of Thursday. The index has slid 53.5 points from start of the month after posting a marginal rise in December. 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 KD 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