Market needs protection
KUWAIT CITY: The crisis in the administration of Kuwait Stock Exchange (KSE) is affecting the morale of share traders, Chairman and Managing Director of Kuwait Financial Center (KFC) Dharar Al-Ghanem told Al-Anba.
Addressing a press conference Al-Ghanem, who is also the Chairman of Investment Companies Union, said "the management of KSE is one of the key factors in improving the stock market, which needs protections especially as shares worth a lot of money are being traded everyday."
He stressed that the post of Manager of KSE should be filled with an eligible person with necessary experience, saying "leaving this important position vacant for a long time will have a negative impact on the stock market and traders."
Urging the concerned authorities to select a suitable candidate for the post as early as possible, Al-Ghanem said "the latest steps taken by the administration of the bourse and the correction phase witnessed by the stock market since the beginning of this year have brought share prices to their normal levels after the wild fluctuation in 2005."
Al-Ghanem claimed the "Profit over Earnings" (P/E ratio) of KSE is the best among bourses in GCC countries, adding "although the bourse is stable at the moment, Iran's nuclear programme continues to be a threat to the security and financial stability of the region ? including stock markets of all GCC states."
The government must establish an independent authority for the stock market to monitor the administration of the KSE and help investors regain their trust in the market, he said.
Meanwhile, Al-Oula Investment Company is planning to market shares of Bahrain Bank through private placement to Kuwaiti, Saudi and Bahraini investors after Eid Al-Fitr, says Al-Anba.
A reliable source said the face value of each share will be one dollar, adding "investors will have to pay 10 per cent extra as registration fees."
Indicating a group of Bahraini investors have already paid 50 per cent of the bank's capital of 200 million dollars, he said "the rest of the shares will be offered for subscription to investors when needed." Al-Oula Investment Company owns 25 per cent of the bank's capital and will market the rest of the shares in Kuwait, he noted.
According to the source Kuwaitis will form a majority of the bank's management besides having a right to the board chairmanship.
Following the establishment of Mashaer Al-Oula Company, and marketing bonds of Meridian Towers in Saudi Arabia, profit of the company is expected to cross 17 fils per share, especially after the private placement of shares of Bahrain Bank is completed.
© Arab Times 2006
