09 March 2006
KUWAIT: Kuwait Stock Exchange struggled yesterday with the Global General Index hit hard, and reaching its lowest level since mid-October 2005. The market fell for the eighth consecutive day.
All sectors plunged yesterday keeping the broader market from making any headway. By session's end, the Global General Index (GGI) (down 5.44 points to 300.68 points) lost 1.78 per cent in the day, 5.78 per cent in the week. The market benchmark, KSE Price Index (down 257.8 points to 10,705 points) too lost 2.35 per cent. The benchmark has dropped 1,349 points (11.19 per cent) since breaching the 12,000-point-mark on 05-02-2006.
After so much selling, there is the potential for the market to see bounces here and there in the weeks ahead. While on the longer term, the market outlook remains positive, stocks are probably not going to be able to rise much beyond recent highs. In general, the sentiment is very negative right now. Investors see little reason to put money to work at the moment.
Losses were steady throughout the session. Shares of Public Warehousing Co succumbed to the selling pressure early on, providing the catalyst for investors to bail out of blue chips and eventually all sectors.
The Global Large Cap Index recoiled by 0.84 per cent in the day. On the Kuwait Stock Exchange board, 166.15mn shares were traded, with declining stocks outnumbering advancing stocks by an 95 to 14 margin.
In news, Al-Mazaya Holding Co formed an affiliate JD40mn company in Jordan, Al-Mazaya Real Estate - Jordan, to focus on real estate investments in Jordan. Omar El Quqa, Executive Vice-president of Global Investment House (Global), Mazaya's strategic partner, told reporters that Al-Mazaya Holding Co, Global Investment House (Global) and recently formed First Jordan Investment Co will each hold a 20 per cent stake in the new company's capital. Meanwhile, the remaining 40 per cent will be offered for public subscription in Jordan. The announcement did little to enthuse investors, with shares of Mazaya and Global shedding 6.76 per cent and 1.35 per cent respectively.
The banking sector was the least hit by yesterday's sell-off, with the Global Banking Index losing 0.23 per cent. Elsewhere, shares of Kuwait Finance House (KFH) rallied in late trading to nudge out of the negative territory and close flat at KD1.980. From a technical analysis perspective, we advice medium-term investors to build positions in KFH's stock if the price breaks the current resistance level of KD2.040, whilst long-term investors are advised to enter positions above the KD2.200 level.
Major advancers included Arabi Group Holding Co (+8.93 per cent), International Investment Projects (+5.49 per cent), United Food Industrial Group (+4.17 per cent) and Kuwait & Middle East Financial Investment Co (+2.25 per cent).
Shares of Markets Complex Co will be traded ex-dividends as of 11-03-2006, after distributing a 15 per cent cash dividend and a 5 per cent stock dividend.
Kuwait Cable Vision Co's Board of Directors proposed a 10 per cent cash dividend and a 7 per cent stock dividend. Shares of United Gulf Bank were traded ex-dividends as of yesterday (08-03-2006). The bank paid a 27.5 per cent cash dividend. Shares of A'ayan Real Estate Co were traded ex-dividends as of yesterday (08-03-2006) after distributing a 10 per cent cash dividend and a 20 per cent stock dividend and offering a 25 per cent rights issue.
Shares of Gulf Cables & Electrical Industries Co were traded ex-dividends as of yesterday (08-03-2006) after distributing a 50 per cent cash dividend and a 15 per cent stock dividend and offering a 30 per cent rights issue.
KUWAIT: Kuwait Stock Exchange struggled yesterday with the Global General Index hit hard, and reaching its lowest level since mid-October 2005. The market fell for the eighth consecutive day.
All sectors plunged yesterday keeping the broader market from making any headway. By session's end, the Global General Index (GGI) (down 5.44 points to 300.68 points) lost 1.78 per cent in the day, 5.78 per cent in the week. The market benchmark, KSE Price Index (down 257.8 points to 10,705 points) too lost 2.35 per cent. The benchmark has dropped 1,349 points (11.19 per cent) since breaching the 12,000-point-mark on 05-02-2006.
After so much selling, there is the potential for the market to see bounces here and there in the weeks ahead. While on the longer term, the market outlook remains positive, stocks are probably not going to be able to rise much beyond recent highs. In general, the sentiment is very negative right now. Investors see little reason to put money to work at the moment.
Losses were steady throughout the session. Shares of Public Warehousing Co succumbed to the selling pressure early on, providing the catalyst for investors to bail out of blue chips and eventually all sectors.
The Global Large Cap Index recoiled by 0.84 per cent in the day. On the Kuwait Stock Exchange board, 166.15mn shares were traded, with declining stocks outnumbering advancing stocks by an 95 to 14 margin.
In news, Al-Mazaya Holding Co formed an affiliate JD40mn company in Jordan, Al-Mazaya Real Estate - Jordan, to focus on real estate investments in Jordan. Omar El Quqa, Executive Vice-president of Global Investment House (Global), Mazaya's strategic partner, told reporters that Al-Mazaya Holding Co, Global Investment House (Global) and recently formed First Jordan Investment Co will each hold a 20 per cent stake in the new company's capital. Meanwhile, the remaining 40 per cent will be offered for public subscription in Jordan. The announcement did little to enthuse investors, with shares of Mazaya and Global shedding 6.76 per cent and 1.35 per cent respectively.
The banking sector was the least hit by yesterday's sell-off, with the Global Banking Index losing 0.23 per cent. Elsewhere, shares of Kuwait Finance House (KFH) rallied in late trading to nudge out of the negative territory and close flat at KD1.980. From a technical analysis perspective, we advice medium-term investors to build positions in KFH's stock if the price breaks the current resistance level of KD2.040, whilst long-term investors are advised to enter positions above the KD2.200 level.
Major advancers included Arabi Group Holding Co (+8.93 per cent), International Investment Projects (+5.49 per cent), United Food Industrial Group (+4.17 per cent) and Kuwait & Middle East Financial Investment Co (+2.25 per cent).
Shares of Markets Complex Co will be traded ex-dividends as of 11-03-2006, after distributing a 15 per cent cash dividend and a 5 per cent stock dividend.
Kuwait Cable Vision Co's Board of Directors proposed a 10 per cent cash dividend and a 7 per cent stock dividend. Shares of United Gulf Bank were traded ex-dividends as of yesterday (08-03-2006). The bank paid a 27.5 per cent cash dividend. Shares of A'ayan Real Estate Co were traded ex-dividends as of yesterday (08-03-2006) after distributing a 10 per cent cash dividend and a 20 per cent stock dividend and offering a 25 per cent rights issue.
Shares of Gulf Cables & Electrical Industries Co were traded ex-dividends as of yesterday (08-03-2006) after distributing a 50 per cent cash dividend and a 15 per cent stock dividend and offering a 30 per cent rights issue.
© Kuwait Times 2006
