KSE up 29 points; banking stocks in strong rebound
KUWAIT CITY: Kuwait Stock Exchange (KSE) rose for the first time in four sessions, closing the week with 0.3 per cent higher after banking stocks make a recovery. The stock market opened higher, but momentum failed to hold and the index suffered heavy retreat in the morning part. It hit a low of 11,377, before sharply rebounding in the last hour. The last minute uptick pushed the index up to close at 11,445.1, some 29 points up from the session before. The weighted index however rose stronger, buoyed by the strong showing of banking heavyweights. Both National Bank of Kuwait and Gulf Bank helped lifted the weighted index 0.7 per cent to 562.2 points.
Grow
Week-on-week, the weighted index managed to grow 1.1 per cent, outperforming the larger price index, which only rose 0.4 per cent after strong gains early week were mostly offset by the correction seen mid-week. Volume recovered after several stocks witnessed hectic trading through out the session. Iraq Holding moved a massive 42.6 million shares Wednesday, while Commercial Bank of Kuwait recorded a volume spike to more than 22 million units. After turnover drying up sharply as jittery investors stayed on the sideline Tuesday, volume rose above 200 million. Some 203 million shares changed hands, 40 per cent higher than the previous day. Deals however remained at 6,404, valued at KD 111 million.
The resurgent of buying interest propped all sectors up aside from real estate. Banking and industrial clocked in the sharpest gain, while insurance jumped more than 2.0 per cent. Real estate however fell after the sluggish performance of its stocks. Market tone recovered, as winners beat losers 52 to 36. 50 stocks out of the 138 counters traded, or more than one third, closed unchanged during the session. Crude oil fell for a second day in New York on expectations fuel consumption will plunge amid forecasts for rising temperatures in the US, Bloomberg reported.
Crude oil for February delivery fell as much as 39 cents, or 0.7 per cent, to $57.77 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract was at $57.88 a barrel at 6:18 a.m. Singapore time. On Tuesday, oil fell 27 cents, or 0.5 per cent, to $58.16 a barrel, while natural gas for January delivery plunged $1.261, or 10 per cent, to $11.022 per million British thermal units, the biggest decline since March 3, 2003. The banking index rebounded, clocking the sharpest gain after being one of Tuesday?s worst performers. It rose 0.8 per cent to 8,421.1 points, after both NBK and Gulf Bank topped 40 fils to their share price. NBK closed at KD 2.220 while Gulf Bank rose to KD 1.340.
Notably, Commercial Bank saw furious trading. 22.1 million shares changed hands, pushing its share price 20 fils up to KD 1.120. Al Ahli Bank of Kuwait was the sector only loser. It fell 10 fils down to KD 0.720. Industrial stocks likewise rebounded, lifting the sector index 0.7 per cent to 7,197.9 points. Kuwait Cement Co led the pack of gainers. It took in 80 fils to KD 1.180. Over 400,000 shares changed hands. Sector headliner National Industries Group Holding reclaimed the 40 fils it lost the session before, ending at KD 1.140.
United Industries Co rose 10 fils up to KD 0.620, after 1.5 million shares were traded. The company told the stock exchange that it made KD 0.9 million from the sale of SADAFCO by its subsidiary United Fisheries Co. United Fisheries realized some KD 2.0 million from the exercise. The companies said profit will be shown in the financial statement ending December 05.
Gains
Boubyan Petrochemical Co and Contracting and Marine Services Co both made 20 fils, ending the week at KD 1.060 and KD 0.560. Several industrial stocks however fell and cut the gains. Kuwait Foundry Co tumbled a sharp 80 fils, as did Gulf Cable and Electrical Industries Co. Kuwait Foundry closed at KD 2.640, while Gulf Cable ended at KD 3.380.
Services also recovered, making up for Tuesday's losses when it rose 0.5 per cent at week's closing. Public Warehousing Co (PWC Logistics) extended its recovery, rising 60 fils Wednesday after clocking in 40 fils gain the session before. The stock ceased trading back at KD 2.900. Sultan Center Food Co, which edged 20 fils down Tuesday, rose back up 40 fils to KD 1.180. Some 1.2 million shares changed hands.
The Transport and Warehouse Group continued to increase, although the pace of advance came off considerably. After making some 400 fils in the last three trading day, the stock moved up another 20 fils to KD 2.780. National Cleaning Co likewise moved up 20 fils to KD 1.140. Both telecom stocks ended the day unchanged. National Mobile Telephone Co stayed at KD 2.560 after slipping for the first time in eight sessions the day before, while Mobile System Telephone Co (MTC) was unmoved at KD 3.520, following a steep loss the day before. Burgan Group for Well Drilling Co slipped another 40 fils to KD 1.080. The stock has lost 12.9 per cent this week, despite its announcement Monday that it won the Kuwait Oil contract with tender of K.D 44.6 million. Burgan also said it is presently also finalizing the negotiations for a contract valued at approximately KD 38 million.
Investment sector barely edged higher, closing at 15,674.3 points. Global Investment House and International Financial Advisor led the gain, after both made 60 fils Wednesday. Global ended at KD 2.700, while IFA topped last session's strong showing to end at KD 2.740. The company told the stock exchange that it made some KD 100 million after selling 117 million shares of IFA Hotels and Resorts Company, or 45 per cent of its stake, at a total KD 152 million via a private subscription. Profits will be shown on its December quarter earnings.
International Finance Company has signed an agreement with IFA which entails the former to receive 7.17 per cent of IFA for Hotels and Resorts in return for parts of common project for Hotels and Resorts Company. The International Finance Company realized a profit of KD 17.2 million from the exercise. The counter ended 5 fils lower to KD 0.395 however. The newly listed shares, Iraq Holding Co and Sokouk Holding Co both registered intense trading. Iraq Holding inched 5 fils to KD 0.085, after 42.6 million shares changed hands. Sokouk ended the day unchanged at KD 0.295. It fell 25 fils on its debut the day before.
Active
Industrial Investment Co, one of the most active counters this week, saw its volume picked up again. 21.7 million shares were bought and sold, nudging its share price 5 fils up to KD 0.305. Kadhma Holding Co ended 10 fils up, ending at KD 0.465. The counter has not declined once after seven days since it was listed. The real estate index fell 0.4 per cent to 6,706.5 after counters like Jeezan Real Estate slipped. It ended 20 fils down to KD 0.720.
By Maisara Ismail
© Arab Times 2005
