21 November 2005
KUWAIT: Kuwaiti equities ended yesterday's session sharply lower, reaching their lowest level in eight trading days. Stocks succumbed to the selling pressure on the lightest trading day since mid-October. The Global General Index recoiled by 5.17 points (or 1.57 per cent) to close at 323.1 points. KSE Weighted Index too was down by 8.35 points (or 1.45 per cent), at 567.22 points. Reflecting the trend, the market benchmark KSE Price Index slipped 181.8 points (or 1.54 per cent), and closed at 11,591.4 points.
The market has been on a bull run for a while now, but yesterday's losses wiped out most of the gains accumulated during the whole month of November. Yesterday's correction came as many investors believed that the rally of prior months meant that there were fewer cheap names to pick from, and only a few stocks still on the bargain counter. However, the KSE still enjoys one of cheapest valuations compared to its regional peers:
Market capitalisation of the KSE shed 1.57 per cent, to stand at KD41.4bn by session-end. With the exception of the insurance sector, which ended the day flat, the market moved only south. Food stocks shouldered the retreat, with the sector index dropping 3.05 per cent. Kuwait Food Co (Americana) saw its share value depreciate by 4.67 per cent in the day. On the broader market for equities, declining stocks clearly outnumbered advancing stocks by a margin of 94 to 10.
In news, shares of Al Safat Investment Co will start trading on the KSE as of tomorrow (21-11-2005). Furthermore, Burgan Holding Co will list its shares on the KSE on 28-11-2005.
Trading on shares of Kuwait Real Estate Bank resumed yesterday, after being halted on Saturday. Trading was frozen on the bank's stock on 19-11-2005, as the bank failed to disclose details of the judgment issued by the court on Wednesday (16-11-2005) on time, hence affecting transparency. All deals executed on the banks shares on Wednesday were cancelled too. KREB ended yesterday's session flat at 740fils. Elsewhere, Gulf Bank and Al-Ahli Bank were down by 2.67 per cent each. The latter received approval from the Central Bank of Kuwait to re-purchase a maximum of 10 per cent of its outstanding shares for a period of six months , starting 25-11-2005. The banking sector index declined by 1.95 per cent.
Volume of shares traded was at its lowest level in over five-weeks of trading, at 181.85mn shares. Arab Real Estate Co was the most actively traded stock, with 27.68mn shares exchanged. The scrip lost 1.67 per cent of its value. But it was a 6.15 per cent decrease in the equity price of Kuwait National Real Estate Services & Investment Co that sent the Global Real Estate Index down by 2.34 per cent. The real estate sector as a whole accounted for 44.85 per cent of the market's total volume.
Elsewhere, A'ayan Real Estate Co spearheaded advancers, clocking 8.62 per cent in gains, and closing at 630fils, its highest level ever. The scrip has grown by an impressive 72.6 per cent since it started trading on the KSE on 14-03-2005. Ajial Real Estate Entertainment Co too was up by 7.84 per cent.
At the same time, the value of shares traded dipped 14.3 per cent, at KD105.96mn. Kuwait Finance House was the leader in this regard, trading 3.52mn shares at a value of KD8.75mn. Shares of Al Mal Investment Co, which have performed robustly on Saturday, released 3.85 per cent of their value. In related news, the company's Board of Directors met on Saturday, and proposed raising its capital by 25 per cent. The Global Investment Index reported a 1.77 per cent slide.
Other major losers included Kuwait Building Materials Manufacturing Co (-14.49 percent), Ra'ad Stores Co. (-6.76 per cent) and Gulf Rocks Co (-5.88 per cent).
KUWAIT: Kuwaiti equities ended yesterday's session sharply lower, reaching their lowest level in eight trading days. Stocks succumbed to the selling pressure on the lightest trading day since mid-October. The Global General Index recoiled by 5.17 points (or 1.57 per cent) to close at 323.1 points. KSE Weighted Index too was down by 8.35 points (or 1.45 per cent), at 567.22 points. Reflecting the trend, the market benchmark KSE Price Index slipped 181.8 points (or 1.54 per cent), and closed at 11,591.4 points.
The market has been on a bull run for a while now, but yesterday's losses wiped out most of the gains accumulated during the whole month of November. Yesterday's correction came as many investors believed that the rally of prior months meant that there were fewer cheap names to pick from, and only a few stocks still on the bargain counter. However, the KSE still enjoys one of cheapest valuations compared to its regional peers:
Market capitalisation of the KSE shed 1.57 per cent, to stand at KD41.4bn by session-end. With the exception of the insurance sector, which ended the day flat, the market moved only south. Food stocks shouldered the retreat, with the sector index dropping 3.05 per cent. Kuwait Food Co (Americana) saw its share value depreciate by 4.67 per cent in the day. On the broader market for equities, declining stocks clearly outnumbered advancing stocks by a margin of 94 to 10.
In news, shares of Al Safat Investment Co will start trading on the KSE as of tomorrow (21-11-2005). Furthermore, Burgan Holding Co will list its shares on the KSE on 28-11-2005.
Trading on shares of Kuwait Real Estate Bank resumed yesterday, after being halted on Saturday. Trading was frozen on the bank's stock on 19-11-2005, as the bank failed to disclose details of the judgment issued by the court on Wednesday (16-11-2005) on time, hence affecting transparency. All deals executed on the banks shares on Wednesday were cancelled too. KREB ended yesterday's session flat at 740fils. Elsewhere, Gulf Bank and Al-Ahli Bank were down by 2.67 per cent each. The latter received approval from the Central Bank of Kuwait to re-purchase a maximum of 10 per cent of its outstanding shares for a period of six months , starting 25-11-2005. The banking sector index declined by 1.95 per cent.
Volume of shares traded was at its lowest level in over five-weeks of trading, at 181.85mn shares. Arab Real Estate Co was the most actively traded stock, with 27.68mn shares exchanged. The scrip lost 1.67 per cent of its value. But it was a 6.15 per cent decrease in the equity price of Kuwait National Real Estate Services & Investment Co that sent the Global Real Estate Index down by 2.34 per cent. The real estate sector as a whole accounted for 44.85 per cent of the market's total volume.
Elsewhere, A'ayan Real Estate Co spearheaded advancers, clocking 8.62 per cent in gains, and closing at 630fils, its highest level ever. The scrip has grown by an impressive 72.6 per cent since it started trading on the KSE on 14-03-2005. Ajial Real Estate Entertainment Co too was up by 7.84 per cent.
At the same time, the value of shares traded dipped 14.3 per cent, at KD105.96mn. Kuwait Finance House was the leader in this regard, trading 3.52mn shares at a value of KD8.75mn. Shares of Al Mal Investment Co, which have performed robustly on Saturday, released 3.85 per cent of their value. In related news, the company's Board of Directors met on Saturday, and proposed raising its capital by 25 per cent. The Global Investment Index reported a 1.77 per cent slide.
Other major losers included Kuwait Building Materials Manufacturing Co (-14.49 percent), Ra'ad Stores Co. (-6.76 per cent) and Gulf Rocks Co (-5.88 per cent).
© Kuwait Times 2005
