Al Madina suspended for trading violations

KUWAIT CITY, May 23: Kuwait market opened the week low on Sunday extending last week's losses into the fourth consecutive day.

The index was weighed down by Zain, which faces more competition in Iraq, where the government is due to tender a fourth mobile operator license.

The index sagged 0.9 percent to drop below the 7000 mark to close 6,997.3 points. Zain fell 2.9 percent. The company's fall came in the wake of Iraq's announcement that it will soon tender a fourth license in a bid to improve telecom services and bolster investment in the war-battered country.

"It shows Zain is under increased competitive pressure," told a Kuwait trader who declined to be named.
 
"Iraq, however, is not the biggest contributor to Zain's bottom line," the trader noted, adding that overall negative sentiment related to lower oil prices is mostly affecting Kuwait's blue chips.

Earlier this year, Zain agreed to sell its operations in 15 African countries to India's Bharti Airtel in a $9 billion deal, with the Kuwait operator switching its focus to markets closer to home.

Kuwait was also taking cue from regional markets, most of which closed low on Sunday, dragged down by lower oil prices and investors testing support levels before seeking to buy bargains.

Regional analysts said there are no positive catalysts for investors to hang on to. "Markets will probably test the lower support before investors see there are bargains to be made."

The market sold 119 million shares for KD 24.8 million, losing 25.1 percent volume compared to last week, and 1.8 percent in value.

When considered sector wise, financial stocks took the biggest hit on Sunday in the midst of volatility and caution-treading by investors keen on offloading shares on the back of low oil prices.

National Bank of Kuwait lost 1.6 percent after shedding 20 fils to close KD 1.180. Commercial Bank of Kuwait clipped 3.5 percent from its share price to end 420 fils.

Burgan Bank also lost 10 fils to close 340 fils. Kuwait Finance House which shed 2.6 percent during early trading managed to claw back in time to keep last week's closing at KD 1.040. Boubyan Bank was the lone winner in the banking sector after clocking 10 fils to close 540 fils.

Burgan Bank announced that its Ordinary Annual General Meeting will be held on June 7, 2010, to discuss approving the issue of bonds in Kuwaiti Dinars or its equivalent in foreign currencies within the maximum limit approved for issued bonds.

The banking sector was down 1 percent on the back of 11.7 million shares sold for KD 6 million. The sectoral volume fell 20 percent and value fell 5 percent. The banking sector sold 9.3 percent of the total market volume.

Meanwhile, the Kuwait Stock Exchange announced that the Violations Committee discussed Thursday the violation filed against Al Madina for Finance and Investment Company related to trading activities on behalf of its customers.

The counts discussed were: the company conducted deals on its shares by switching between its customers' accounts no. 1 and no. 2 which affected KSE's work.

Secondly, the company used a customer's account to set the closing price of its share. Therefore, the Committee decided to suspend Al Madina for Finance and Investment Company from trading for five days starting from Sunday.

The investment sector was the worst loser, falling 0.1 percent steeper than the banks end 1.4 percent lower than last week's closing. The sectoral volume thinned by 37 percent numbering 25.7 million shares and was sold for KD 4.7 million. The value was down 8.5 percent. National Investment Company slipped 3.5 percent losing 15 fils to close 365 fils. Kuwait Projects Company took out 10 fils to close 375 fils .The company fell 2.5 percent.

Commercial Facilities Company was the only winner in the red-splattered sector on Sunday. The company added 10 fils to its share price to touch 315 fils.

Investors Holding Group Co announced its results for the fiscal year 2009 ending on 31/12/2009. The company's net loss was KD 14.8 million. Its loss per share was 13.92 fils. The Board of Directors recommended no dividend payout for the fiscal year.

The investment sector sold the most number of shares in the market on Sunday. The industrial sector also suffered significant decline stumbling 1.3 percent and selling 65.4 percent. The sector sold 6.2 million shares, 65 percent fewer than last week, while the value was down by 43 percent falling to 2 million.

The services sector was 0.8 percent in the red and sold 22.5 million shares for KD 9.2 million. Agility lost 3.7 percent after losing 20 fils to close 520 fils. Zain took out 20 fils to close KD 1.360. Wataniya managed to slip sideways at KD 1.720.

Meanwhile, Kuwait Medical Services Co announced its results for the first quarter for the 3 months ending on 31/3/2010. The company's net profit was KD 89,891 and earning per share was 1.18 fils. The net profit for the same period last year was KD 364,270 and earnings per share was 4.78 fils.

Among the top gainers of the day, Kout Food Group led at 6.4 percent, followed by Kuwait Company for Process Plant Construction and Contract at 5.2 percent.

Aayan Real Estate Company followed at 4.3 percent, while Commercial Facilities Company moved up 3.2 percent. Metal and Recycling Company gained 2.8 percent.

On the flip side, Al Dar National Real Estate Company fell 8.9 percent, topping the loser's list on Sunday. IFA Hotels and Resorts Company drew in level at 8.9 percent, and thus making Automated Systems Company the second worst loser at 7.4 percent.

Ektitab Holding Company shed 6.8 percent, followed by Al Deera Holding Company at 6.1 percent.

Gulf Finance House was the leading volume mover on Sunday. It sold 38.4 million shares. Boubyan Bank sold 6 million shares, followed by Abyaar Real Estate Development Company at 5.4 million shares.

Kuwait Projects Company Holding and Mobile Telecommunications Company sold 5 million shares apiece.

© Arab Times 2010