17 September 2008
KUWAIT CITY: Kuwait's benchmark extended gains into a second day Wednesday to end 12,602.6 points. The increase was 1.9 percent. The index seesawed in the first half of the trading session with a steep gain and decline, to recover from thereon and gradually inch towards a higher closing.
The dull sentiments of the last couple of days perked up following news of Kuwait Investment Authority's investment in the bourse. National Bank of Kuwait CEO Ibrahim Dabdoub said Kuwait Investment Authority's decision to boost investments in the local market helps but is not enough to overcome the bourse slide. Dabdoub urges direct and indirect government intervention to pour more liquidity in the financial system, saying it was now more important than curbing inflation.
Meanwhile, speculations were rife about Kuwait Investment Authority's future course of action following Bank of America's acquisition of Merrill Lynch, in which KIA has invested nearly $ 2 billion. Kuwait Investment Authority denied reports it may sell its stake in Merril Lynch, inside sources said without giving any details.
Surged
National Bank of Kuwait surged more than 6 percent, pacing the index to a higher close, after the lender started buying back stock. The bank hit the highest permitted limit for a day of 100 fils to close KD 1.740. Kuwait Finance House, from the banking sector, also accomplished similar feat gaining 100 fils.
Kuwait Finance House was up 4.3 percent.
A spokesman for the National Bank of Kuwait said the lender had no exposure to Lehman Brothers, which has filed for bankruptcy.
National Bank of Kuwait, the country's biggest bank by assets, has started buying back its own shares after it fell 4 percent in the past week in the wake of a Kuwait stock market slide, agencies reported quoting an NBK official. "We started today... We feel that the market needs our support."
NBK said in May it had won central bank approval to buy back up to 10 percent of its stock. The six-month buyback period started on May 24, NBK said then.
On Tuesday, Commercial Bank of Kuwait (CBK), Kuwait's third-largest bank by market value, said it would start buying back 10 percent of its stock.
The market sold a total of 341.5 million shares worth KD 159.2 million posting a decline in the overall volume by 1 percent compared to Tuesday. However, in terms of value, the market was up 12.9 percent.
The banking sector went up 2.3 percent Wednesday on the back of 26.9 million shares sold for KD 34.3 million, recording an increase of 73.2 percent in volume and 6 percent in value.
Gulf Bank of Kuwait fell 20 fils, while Commercial Bank of Kuwait gained 20 fils. Boubyan Bank gained 5.4 percent taking in 25 fils to end 480 fils.
Kuwaiti banks are not exposed to the US subprime crisis and the financial crisis there, the Gulf Arab state's central bank governor said on Wednesday.
"We are reassured on the safety of the conditions for the banking and financial system in the state of Kuwait," Sheikh Salem Abdul-Aziz al-Sabah told al-Arabiya television.
Meanwhile, the head of the banking association said on Tuesday Kuwaiti lenders have probably no exposure to US bank Lehman Brothers after it filed for bankruptcy protection.
Promising
In the investment sector Kuwait Investment Company moved sideways to end 275 fils. Local media reported Kuwait Investment Company has invested KD 50 million in shares of National Bank of Kuwait, Mobile Telecommunications Company, National Industries, Agility, Kuwait Finance House and National Mobile Telecommunications on Tuesday, considering that the shares present a promising long term investment.
Investment Dar, the Islamic firm which owns half of British luxury car maker Aston Martin, said it is upbeat on net profit growth in the third quarter after a slight decline in the second quarter.
"Yes, I'm very optimistic. Not only optimistic, I'm sure of it," Executive Vice-President Amr Abou El-Seoud told agencies when asked about profit growth expectations for the third quarter.
He declined to give a 2008 profit forecast but said Dar was also upbeat about the full-year growth after boosting net profit by 37 percent in 2007, adding its business was not exposed to any risky US investments despite various bank partnerships.
Global Investment House Company took in 30 fils to gain 0.8 percent. At closing Global's value was 810 fils. Frontline stock Kipco Assets Management Company (Kamco) climbed 2.8 percent after adding 20 fils to its share value.
Global Investment House bought shares of Villa Moda LifeStyle for 170 fils per share on Tuesday in the interest of UAE firms till Thursday, a local newspaper cited a bourse statement as saying.
In another development, Al-Mal Investment Co, a firm controlled by the family-owned conglomerate Kharafi Group, said it signed a deal with Saudi's General Investment Authority to develop an economic city in the kingdom.
Al Deera Holding Company was the heaviest loser not only in the investment sector but in the whole market shedding 11.1 percent, when its price fell 45 fils to end 360 fils. Al Safat Investment Company was also on the list of the day's big losers, at 5.8 percent. Al Safat lost 25 fils to close 485 fils.
Volume
The investment sector was up 2.6 percent, selling 88 million shares for KD 31.6 million. The sectoral volume was down 25.2 percent compared to last trading day, though it was the second largest volume in the market.
Logistics provider Agility was up 30 fils to close 810 fils, while Mobile Telecommunication Company (Zain) was up 40 fils. Zain's closing value was KD 1.660. However, the biggest gainer of the day in the services sector was Wataniya, which took in 100 fils, the highest limit per day. Wataniya closed KD 1.420.
Among the top gainers of the day, Kuwait Company for Process Plant Construction and Contracting led the list at 9.6 percent. Close behind was Sultan Center Food Company at 9.2 percent. Sultan Center took in 25 fils to close 295 fils. Hits Telecom Holding Company equaled Sultan at 9.2 percent sharing the third place for the best gainers in the day.
Among the top losers, Al Deera Holding Company took the worst blow of 11.1 percent. Masaleh Real Estate Company followed at 10.7 percent. Ikarus Petroleum Industries Company fell 7.1 percent.
Al Safwa Group Company made news by selling the largest single volume of the day of 50.3 million shares. Villa Moda Life Style sold 24 million shares, while Al Madina for Finance and Investment Company sold 10 million shares.
KUWAIT CITY: Kuwait's benchmark extended gains into a second day Wednesday to end 12,602.6 points. The increase was 1.9 percent. The index seesawed in the first half of the trading session with a steep gain and decline, to recover from thereon and gradually inch towards a higher closing.
The dull sentiments of the last couple of days perked up following news of Kuwait Investment Authority's investment in the bourse. National Bank of Kuwait CEO Ibrahim Dabdoub said Kuwait Investment Authority's decision to boost investments in the local market helps but is not enough to overcome the bourse slide. Dabdoub urges direct and indirect government intervention to pour more liquidity in the financial system, saying it was now more important than curbing inflation.
Meanwhile, speculations were rife about Kuwait Investment Authority's future course of action following Bank of America's acquisition of Merrill Lynch, in which KIA has invested nearly $ 2 billion. Kuwait Investment Authority denied reports it may sell its stake in Merril Lynch, inside sources said without giving any details.
Surged
National Bank of Kuwait surged more than 6 percent, pacing the index to a higher close, after the lender started buying back stock. The bank hit the highest permitted limit for a day of 100 fils to close KD 1.740. Kuwait Finance House, from the banking sector, also accomplished similar feat gaining 100 fils.
Kuwait Finance House was up 4.3 percent.
A spokesman for the National Bank of Kuwait said the lender had no exposure to Lehman Brothers, which has filed for bankruptcy.
National Bank of Kuwait, the country's biggest bank by assets, has started buying back its own shares after it fell 4 percent in the past week in the wake of a Kuwait stock market slide, agencies reported quoting an NBK official. "We started today... We feel that the market needs our support."
NBK said in May it had won central bank approval to buy back up to 10 percent of its stock. The six-month buyback period started on May 24, NBK said then.
On Tuesday, Commercial Bank of Kuwait (CBK), Kuwait's third-largest bank by market value, said it would start buying back 10 percent of its stock.
The market sold a total of 341.5 million shares worth KD 159.2 million posting a decline in the overall volume by 1 percent compared to Tuesday. However, in terms of value, the market was up 12.9 percent.
The banking sector went up 2.3 percent Wednesday on the back of 26.9 million shares sold for KD 34.3 million, recording an increase of 73.2 percent in volume and 6 percent in value.
Gulf Bank of Kuwait fell 20 fils, while Commercial Bank of Kuwait gained 20 fils. Boubyan Bank gained 5.4 percent taking in 25 fils to end 480 fils.
Kuwaiti banks are not exposed to the US subprime crisis and the financial crisis there, the Gulf Arab state's central bank governor said on Wednesday.
"We are reassured on the safety of the conditions for the banking and financial system in the state of Kuwait," Sheikh Salem Abdul-Aziz al-Sabah told al-Arabiya television.
Meanwhile, the head of the banking association said on Tuesday Kuwaiti lenders have probably no exposure to US bank Lehman Brothers after it filed for bankruptcy protection.
Promising
In the investment sector Kuwait Investment Company moved sideways to end 275 fils. Local media reported Kuwait Investment Company has invested KD 50 million in shares of National Bank of Kuwait, Mobile Telecommunications Company, National Industries, Agility, Kuwait Finance House and National Mobile Telecommunications on Tuesday, considering that the shares present a promising long term investment.
Investment Dar, the Islamic firm which owns half of British luxury car maker Aston Martin, said it is upbeat on net profit growth in the third quarter after a slight decline in the second quarter.
"Yes, I'm very optimistic. Not only optimistic, I'm sure of it," Executive Vice-President Amr Abou El-Seoud told agencies when asked about profit growth expectations for the third quarter.
He declined to give a 2008 profit forecast but said Dar was also upbeat about the full-year growth after boosting net profit by 37 percent in 2007, adding its business was not exposed to any risky US investments despite various bank partnerships.
Global Investment House Company took in 30 fils to gain 0.8 percent. At closing Global's value was 810 fils. Frontline stock Kipco Assets Management Company (Kamco) climbed 2.8 percent after adding 20 fils to its share value.
Global Investment House bought shares of Villa Moda LifeStyle for 170 fils per share on Tuesday in the interest of UAE firms till Thursday, a local newspaper cited a bourse statement as saying.
In another development, Al-Mal Investment Co, a firm controlled by the family-owned conglomerate Kharafi Group, said it signed a deal with Saudi's General Investment Authority to develop an economic city in the kingdom.
Al Deera Holding Company was the heaviest loser not only in the investment sector but in the whole market shedding 11.1 percent, when its price fell 45 fils to end 360 fils. Al Safat Investment Company was also on the list of the day's big losers, at 5.8 percent. Al Safat lost 25 fils to close 485 fils.
Volume
The investment sector was up 2.6 percent, selling 88 million shares for KD 31.6 million. The sectoral volume was down 25.2 percent compared to last trading day, though it was the second largest volume in the market.
Logistics provider Agility was up 30 fils to close 810 fils, while Mobile Telecommunication Company (Zain) was up 40 fils. Zain's closing value was KD 1.660. However, the biggest gainer of the day in the services sector was Wataniya, which took in 100 fils, the highest limit per day. Wataniya closed KD 1.420.
Among the top gainers of the day, Kuwait Company for Process Plant Construction and Contracting led the list at 9.6 percent. Close behind was Sultan Center Food Company at 9.2 percent. Sultan Center took in 25 fils to close 295 fils. Hits Telecom Holding Company equaled Sultan at 9.2 percent sharing the third place for the best gainers in the day.
Among the top losers, Al Deera Holding Company took the worst blow of 11.1 percent. Masaleh Real Estate Company followed at 10.7 percent. Ikarus Petroleum Industries Company fell 7.1 percent.
Al Safwa Group Company made news by selling the largest single volume of the day of 50.3 million shares. Villa Moda Life Style sold 24 million shares, while Al Madina for Finance and Investment Company sold 10 million shares.
By Valiya S. Sajjad
© Arab Times 2008
