Agility tumbles 7.8 pct, Zain drops

KUWAIT CITY, April 13: Kuwait stocks posted steep losses on Tuesday, extending the slide to the fourth straight session. The index shed 62.2 point as profit taking weighed heavily on the trading floor. The day's decline was led by Agility while Zain managed to restrict its losses. The sentiments remain markedly negative in absence of solid cues.

The bourse wound up at 7487.20 points after trading slightly lower intra-day. The weighted index dropped 4.92 points to 443.83 points while the volume turnover saw slight rise. A total of 374 million shares were traded during the day - up 4 percent from the day before. The trading volume has fluctuated above the 300 million mark since the start of the week.

All sectors closed lower during the session barring insurance and services which closed flat. Banking sector edged 0.3 percent lower while investment dived 1.5 percent. Industrials slid 1.4 percent and real estate lost 1.6 percent - the steepest decliner of the day. Food sector was down 1.3 percent.

Agility tumbled 7.8 percent erasing the gains on Monday. The stock closed at KD 0.590 and saw a volume turnover of 7.5 million shares. The company has posted a 22 percent rise in fourth-quarter profit. Net income stood at KD 40.9 million, up from KD 33.6 million in the year-earlier period.

"At present, the company is suspended from bidding for new U.S. contracts and if that ban is extended to existing contracts it would be damaging because U.S. contracts account for at least 50 percent of Agility's turnover", Reuters quoted Naser al-Nafisi, general manager of Al Joman Center for Economic Consultancy.

Zain eroded 20 fils adding to an identical loss on Monday. The scrip wound up at KD 1.340 after trading 10.1 million shares. The telecom operator's board has proposed a cash dividend of 170 fils per share, excluding distribution from the sale of some of Zain's African assets to India's Bharti Airtel.

Wataniya Telecom bucked the trend to gain 20 fils after posting an identical rise on Monday and Kuwait Gulf Links climbed 25 fils on back of 14.4 million shares to wind up at KD 0.395. The stock had soared 21.8 percent in March and has rallied a whopping 174 percent so far during the year. Kuwait Food Co (Americana) dropped 20 fils to KD 1.560 while Jazeera Airways inched 2 fils lower.

Decliners
Among other notable decliners, National Bank of Kuwait dropped 20 fils to end at KD 1.240 paring the strong gains in the day before. The counter saw over 6.2 million shares change hands. Gulf Bank was down 10 fils at KD 0.375 while Commercial Bank was not traded during the day.

Al Ahli Bank took in 5 fils after closing in red on Monday and Ahli United Bank dropped 10 fils to close at KD 0.530. Burgan Bank slid 25 fils to end at KD 0.350. The lender fell 1.35 percent in March but is up 10 fils year-to-date. Kuwait Finance House climbed 20 fils to close at KD 1.160 while Boubyan Bank did not move in either direction.

Investment stocks too saw marginal to moderate losses during the day. Sector heavyweight KIPCO fell 5 fils to KD 0.450 after trading 7.47 million shares International Financial Advisors flunked 2 fils to settle at KD 0.095. National Investment Co shed 25 fils extending the loss from previous session. The company has recorded a loss of KD 26,076,453 and loss per share of 31 fils in 2009 against a loss of KD 20,732,565 and loss per share of 25 fils in the year before.

Global Investment Co held the ground unchanged at KD 0.102 after trading in a narrow 2 fils range while Bayan Investment Co slipped 5 fils to close at KD 0.079. Al Safat Investment Co eroded 4 fils whereas Al Madina For Finance and Investment Co inched 1 fils lower to KD 0.067 after trading 11.84 million shares.

Industrials major National Industries Group fell 5 fils while Kuwait Pipes dropped 25 fils to close at KD 0.350. Kuwait Cement Co shed 20 fils and Gulf Cables slid 40 fils to close at KD 1.720 after stagnating on Monday.

The top gainer of the day, National Cleaning Co jumped 7.6 percent while Kuwait Gulf Links stood next. Gulf Petroleum Investment Co slid 8.3 percent, the biggest loser of the day, while Al Qurain Holding Co topped the volume with over 38 million shares changing hands during the day. 7624 deals worth KD 82.99 million were transacted - down 8.3 percent over previous session.

Weak
The market opened weak and lost ground steadily in early trade as profit taking dragged shares across the sectors. The index continued to erode and bottomed at 7460.8 points in the final lap. However, a slight spurt in buying at close helped pare the losses marginally.

The bourse has been south bound during week and has slid 82 points from Sunday's opening level. The index has lost 44 points since the start of the month after gaining 2.10 percent in March driven by Zain stake sale optimism. It is trading 9 percent higher year-to-date.

In the bourse related news, Al Sour Fuel Marketing Company has announced that its Board of Directors approved on March 18, 2010 its financial statements for the year ended December 31, 2009. The company has posted a net profit amounting to KD 4,823,940 and earnings per share of 16.09 fils compared to a net profit of KD 3,360,807 and earnings per share of 11.21 fils in the year before. The Board of Directors has recommended the distribution of cash dividends at 12% of the share nominal value.

Tamdeen Real Estate Company has notched a net profit amounting to KD 2,207,706 and earnings per share of 7.3 fils in 2009 compared to a net profit of KD 13,592,887 and earnings per share of 36.5 fils for the year 2008. The Board of Directors has also recommended the distribution of cash dividends at 10% of the share nominal value.

Kuwait Privatization Project Holding has posted a net profit of KD 3,085,389 and earnings per share of 4.08 fils in 2009 as against a net loss of KD 13,737,325 and loss per share of 17.56 fils in the year before. The Board has also recommended retaining earnings for the year 2009.

Tamdeen Real Estate Company has logged a net profit amounting to KD 2,207,706 and earnings per share of 7.3 fils as against a net profit of KD 13,592,887 and earnings per share of 36.5 fils in 2008. The Board of Directors has also recommended the distribution of cash dividends at 10% of the share nominal value.

© Arab Times 2010