KSE continues to lose steam
Dar in steep fall
KUWAIT CITY: Kuwait Stock Exchange (KSE) resumed its losses, opening the week down 0.8 per cent. The index ended at 11,342.5, its lowest over seven weeks. The index has edged lower seven times in the last nine sessions, losing over 620 points during the period. It did record a solid rebound last Tuesday, but strong selling pressure wiped out the gains at the end of the week. The market opened weakly Saturday, and went on an unbroken decline, poor sentiment weighing heavily on investors' psyche. The KSE even dipped below 11,300 before a last minute rally topped 50 points to the index, cutting the losses to 86.1 points.
Lower
The weighted index meanwhile fell 0.7 per cent to 547.1 points, as heavyweights such as National Bank of Kuwait and Mobile System Telephone Co (MTC) edged lower. The market witnessed harsh correction in the last two weeks, falling for five straight sessions until the mid-week breather. Market tone remained down; 64 out of the 127 counters traded Wednesday fell, while 29 advanced. The other 34 closed unchanged. The continuing correction phase dampened the trading floor activities. The KSE's volume ebbed to its lowest since July 23 on Saturday. 132.3 million shares changed hands, more than 20 per cent lower than the session before, as the number of deals took place fell to 6,695. Turnover came to just KD 73.1 million.
Again seven out of the eight trading sectors closed lower. Food index shouldered the sharpest fall, as investment and banking too recorded hefty losses. The sole index gainer during the period was the real estate index, which managed to inch up just 2.3 points. The FOMC announced the widely expected 25bps hike in Fed funds rate late Tuesday, and analysts largely think that the Fed will likely put markets on notice to expect another hike at the end of January. Central Bank of Kuwait is largely expected to take cue from any move from the Fed. Global Investment House, in its research note this week, said although the overall economic environment remains sound, there is little in the near term that is likely to push up prices significantly from here. "The strength in equities has been due to the healthy corporate results that were seen over the past nine months. This fact is now largely priced in," it wrote.
It was good news on the oil front. A Bloomberg survey of analysts showed that crude oil may rise in New York as US homes and businesses buy winter heating fuel. Crude oil rose 60 cents, or 1 percent, during the first four days of last week to $59.99 a barrel on the New York Mercantile Exchange. On Friday, however, crude oil for January delivery fell 54 cents, or 0.9 percent, to $59.45. Headlining the fall in the banking index was NBK. It lost 60 fils Saturday to end at KD 2.080, its lowest since the start of November. Kuwait Finance House however rebounded, taking in 40 fils this session to rise to KD 2.240. Still, the drop in other shares like Gulf Bank and Burgan Bank pushed the sector index sharply lower. Gulf Bank fell 40 fils down while Burgan eased 10 fils. The counters ended at KD 1.320 and KD 0.540 respectively.
Edged
The banking index as a whole fell 1.1 per cent to 8,222.9, after trading above 9,000 a month back. The investment index meanwhile fell 1.0 per cent to 15,469.2, as Kuwait Investment Co edged down 30 fils. The stock fell to KD 0.670, while Kuwait Financial Center (Markaz) and GulfInvest International lost 20 fils and 25 fils each. Markaz recovered middle of last week, but fell back in the last two sessions, retreating to KD 0.750 Saturday. GulfInvest meanwhile fell to KD 0.410 on the back of 5.1 million shares traded. The Investment Dar lost a steep 60 fils Wednesday, and extended it by another 20 fils during the trading period. It slipped to KD 1.740. Still, some gains were recorded by several stocks like Kuwait Invest Holding Co. The counter regained back the 40 fils it lost the previous session. It traded up to KD 1.080. Al Deera Holding Co rose a sharp 60 fils, extending its rebound. The stock, which bled a sharp 16.7 per cent in the first half of last week, gained for the third day to KD 1.620. Industrial index too fell 0.9 per cent, after sharp fall in National Industries Group Holding and Portland Cement Co. National Industries dropped 60 fils, while Portland Cement lost 80 fils, to end the session at KD 1.660 and KD 1.120.
Gulf Glass Manufacturing Co was Saturday's biggest lower, losing 7.8 per cent when it fell 50 fils down to KD 0.590. United Industries Co meanwhile slipped 30 fils, and Kuwait Cement lost 40 fils. The counters closed down to KD 1.120 and KD 0.630. However several counters advanced and moderated the index losses. Among them was Gulf Cable and Electrical Industries Co, which rose 40 fils up. The stock ended at KD 3.420. Equipment Holding Co rose 25 fils to KD 0.450. 1.3 million shares changed hands. Services sector too fell. The sector index ceased at 19,354.3, 0.7 per cent down after Mobile System Telephone Co (MTC) fell steeply. MTC tumbled 60 fils Wednesday to KD 3.560. It announced recently that it did not win the bid for Telsim, Turkey's second largest mobile company. MTC offered the second highest bid in an auction after UK Vodafone Company, which has won the bid.
National Cleaning Co fell 100 fils down to KD 1.200, while Gulf Petroleum Investment (PetroGulf) slipped for the first time in five sessions, losing 30 fils to KD 0.850. Public Warehousing Co (PWC Logistics) however rebounded, after hitting a twenty-six month low. It rebounded 60 fils up to KD 2.640, after suffering steep losses last week. Sultan Center Food Co reclaimed the 20 fils it lost at the end of last week, ending Saturday at KD 1.100. National Mobile Telephone Co (Wataniya) rose for the third straight session. The stock topped another 20 fils to its share price to end the session back at KD 2.460. The real estate sector recovered, even though it traded just barely higher at 6,639.7. Only four of its stocks closed higher, but several strong rebounds of its members helped float the index.
Changed
Aayan Real Estate Co rose a sharp 50 fils, to KD 0.610. It was the best performing stock of the day, growing 8.9 per cent during the session. Salhiya Real Estate advanced 30 fils up to KD 0.760, while Tameer Real Estate inched up 4 fils to KD 0.234, after 6.1 million shares changed hands. Kuwait Lebanese Real Estate rose 10 fils up to KD 0.550, its first gain in nine sessions. Mabanee Co meanwhile extended its losses. After falling steeply down at the end of last week, it edged 20 fils lower to KD 0.640.
By Maisara Ismail
© Arab Times 2005
