11 April 2010
KUWAIT: The Kuwait Stock Exchange (KSE) was able to regain last week's loss as investors were picking up some selected stocks based on revealed investment intentions. Also the cleared year end corporate results along with the concluded 1Q2010 period which gives some heads up of what to expect wheeled investors motion. As measured by Global's weighted General Index, the Kuwaiti market closed the week adding 1.77 percent, at 214.10 point. On a year-to-date basis, the index gains reached 14.97 percent. Kuwait
Stock Exchange (KSE) price index was also up by 94.40 points (1.26 percent) and closed at 7,569.5 points. Total market capitalization reached KD35.13bn. Market breadth was skewed towards advancers as out of 158 shares traded this week, 74 shares advanced against 58 declining.
Trading activity was higher this week with major allocation changes in certain stocks. Total traded volume was up by 4.33 percent reaching 1.88bn shares changing hands at a total traded value of KD381.23mn (+0.86 percent compared to the week before). High volume was seen on the Services sector, accounting for 29.80 percent of the total traded volume in the market with 561.08mn shares traded. Mubarrad Transport Company was the highest volume traded for the week with 103.06mn share traded on its stock. The c
ompany was traded with its new increased capital of 29.188 percent this week. On the value list, the Services sector took the lead as well with KD117.37mn traded, accounting for 30.79 percent of total traded market value.
Zain was the most traded stock in the sector and came second on the weekly value list with KD26.32mn traded on its share. However, Boubyan Bank topped the same list with KD32.02mn traded on its share accounting for 8.40 percent of the total weekly traded value. The scrip was up by 5.66 percent this week.
Sector-wise, Global Non-Kuwaiti Index was the biggest gainer, adding 4.06 percent to its value. Ahli United Bank geared the index move with 15 percent increase in its share price. Global Industrial Index came second with an increase of 2.71 percent as gainers overweight losers in the sector. Hilal Cement Company was the top gainer in the sector, adding 21.82 percent to its share price and made it to the top gainers list. The Banking sector was another notable advancer with Global Banking Index ending the
week 2.64 percent higher. Al-Ahli Bank of Kuwait was the biggest gainer in the sector with its share price rising 12.09 percent.
On the other side, Global Food Index was the biggest loser, shedding 0.22 percent of its value. The index was dragged down by the only loser in the sector, Danah Al-Safat Foodstuff as its share price shed 1.05 percent during the week. Global Insurance Index was the only other loser, as it lost 0.14 percent of its value. Al-Ahleia Insurance Company was the only retreater in the sector, shedding 1.02 percent of its share price. Company-wise, Kuwait & Middle East Financial Investment Company topped the gain
ers list with its share price adding 52.17 percent. On the other hand, another investment company but topped the losers list this time, National International company (Holding) shed 20 percent of its share price. Global Investment Index ended the week up by 0.60 percent.
Global's special indices were up this week. Global Small Cap (Low 10) index closed up by 4.20 percent while Global Large Cap (Top 10) Index added 1.30 percent to its value. Global Islamic Sharia Index rose 0.80 percent.
Macroeconomic News
Kuwait recorded a KD6bn budgetary surplus in 2009, according to the government newly released figures. Despite the finance minister's efforts last year to increase Kuwait's non-oil revenue, however, the statistics show that the income from these sources came to no more than six percent of the total state revenue, with 94 percent of the income coming from oil.
The Central Bank of Kuwait (CBK) issued KD80mn ($277.1mn) worth of one-year treasury bonds on Wednesday, April 7, 2010, with a coupon rate of 1.25 percent. Bids for the bonds amounted to KD393mn, central bank data showed. The last issue was on March 24, for KD100mn, with 1.25 percent coupon.
Inflation in Kuwait during 2009 rose by four percent compared to the previous year, figures from the Central Statistics Department showed this week. Inflation in 2008 was 10.6 percent. Consuming prices reached a record 136 points last year, showed the figures. They were 130.8 points in 2008. Inflation of food rose 2.3 percent and it increased by 9.3 percent for the beverages and tobacco, said the figures. Textile inflation swelled by 4.9 percent, while it was 5.1 percent for housing services, they showed.
Inflation of goods and house services jumped by 5.9 percent. Inflation in educational and health services was up by 4.3 percent. The global downturn slashed growth rates across the Gulf Arab oil producing region, reducing consumer price growth from 2008 record peaks.
Oil related news
Price of Kuwaiti crude oil reached $81.07 per barrel (pb) on Tuesday, April 6, an increase of $3.89 per barrel compared to a week earlier, Kuwait Petroleum Corporation (KPC) said. The
hike in crude prices this week comes on the heels of announcement of data in the US indicating increase in new jobs, which means an easing of the global financial crisis and a certain level of recovery which would revive demand. Member countries of the Organization of Petroleum Exporting Countries (OPEC) aim to keep oil prices between $70-$80 pb to achieve balance between the interests of producers, who need continuous funding for developing and exploring new oil fields, and consumers, who suffer from grea
t economic decline due to the economic crisis.
Kuwait Oil Company (KOC) is planning to execute a project to install 31 oil wells at a cost of KD75mn in the Al-Manaqeesh and Om Qadeer oilfields. KOC is planning to dig 20 oil wells in the Al-Manaqeesh field in the west of Kuwait, in addition to the collection pipelines. The project has an estimated cost of KD54mn. As for the Om Al-Qadeer oilfield, also in the west of Kuwait KOC will dig 11 other well with accompanying collection pipelines at a cost of KD21mn.
Other local news
Warba Bank is now registered with the Central Bank of Kuwait (CBK) on the 'Operating Islamic Banks' list and the listing is effective as of April 5, virtue of recommendation by the Finance Minister, the CBK Governor said. Government Sheikh Salem Abdulaziz Al-Sabah said that the listing was virtue of articles of law 32/68, amended by law 30/2003 on creating of an Islamic Banks list in the articles and administrative sections dealing with regulation of the banking and finance activity in the State of Kuwait.
He noted that the bank is the sixth on the list, and its addition would boost competition which would in turn be in the best interest of both clients and the state's overall economy. The list thus includes Kuwait Finance House (KFH), Boubyan Bank, Kuwait International Bank, Al-Ahli United Bank, Al-Rajhi Bank branch, and now Warba Bank.
All GCC stock markets posted gains by the end of the month of March 2010. In UAE, Dubai Financial Market posted double digits gains of 15.73 percent by the end of the month. KSE concluded the month 2.88 percent higher, as measured by Global Kuwait Index.
GCC stock markets also concluded the first quarter of the year 2010 with solid gains that ranged between 2 percent to over 13 percent. The Kuwaiti market came in the lead, up by 13.27 percent by the end of 1Q2010. The Saudi market followed, up by 11.10 percent. Markets' performance will be dictated during the coming months by 1Q2010 corporate results and any sudden announcements that might either push the markets to higher grounds, or set them back, erasing some or even all their profits accumulated during
the first quarter of the year.
Kuwait Stock Exchange
Kuwait Finance House (KFH) said it had set up a joint venture with Canada's Killam Properties Inc to buy up to C$450mn of residential property in Canada. The joint venture is part of the Kuwaiti lender's plans to expand in global markets, it said. Residential real estate will be its first step to be followed with further investments in industrial, administrative, rehabilitation or senior citizens care real estate, according to market conditions, KFH said in a statement.
Kuwait Portland Cement Company said it has authorized Tamdeen Investment Company to sell at least half of its stake in Ahli United Bank. "Portland, has authorized Tamdeen to sell 15mn shares as a minimum of the total shares it owns in Ahli United Bank, which are about 30mn shares, for a price of at least $1.10 per share," equivalent to a total price of $16.5mn, Portland said in a statement. The firm said it would make a profit of about KD3.29mn ($11.40mn) if it sells at least half of its stake in the lende
r.
As per the above, Tamdeen Real Estate Company (owns 51.37 percent in Tamdeen Investment Company had completed the sale of its 51.37 percent stake in the Ahli United Bank (AUB) and would generate earnings of nearly KD50.34mn. These gains would be recorded in 2Q2010 financial statements.
National Bank of Kuwait (NBK) said it was considering buying a stake in Garanti Bank as Turkey was one of the emerging world's most attractive banking sectors. "NBK wants to expand in Turkey, a country that has a lot of potential," said NBK's chief executive, Ibrahim Dabdoub. General Electric said in February it would sell its 20.85 percent stake in the Turkish lender, currently valued at $4.3bn. NBK is the first bank to come forward publically and declare its interest.
There has also been speculation that private equity funds might be eyeing part of the stake. Kuwaiti logistics firm Agility will postpone the release of its 2009 financial results until April 11 as it tries to reach a settlement with the US government on a fraud case. Agility, which had already delayed the results to April 6, said in a statement this week that it was waiting to see "whether or not it can resolve a legal dispute with the US government." The company said that trading in its shares will conti
nue to be halted. Agility, formerly Public Warehousing Co KSC, is in talks to resolve an indictment accusing it of overcharging the US. Army on supply contracts in Iraq, Kuwait and Jordan. If no settlement is reached by April 11, Agility will announce the results after making "enough provisions.
Highlights of the week
Spain is seeking to intensify its relationship with Kuwait in light of the five-year development plan recently announced by the Gulf state, with this strengthening of ties expected to present many opportunities for joint ventures between the two countries, according to Pablo Cascon, the Commercial Attache at the Spanish Embassy in Kuwait. Created in 2006, Investinspain, a government agency dedicated to promoting and attracting foreign investment to Spain, is part of the Spanish Ministry for Industry, Touri
sm and Trade's Secretariat for Commerce. As a public body, Investinspain informs potential investors about the various green field opportunities for investments, welcoming interest in both public and private investments. With an extended network of offices worldwide, Investinspain is shortly to open an office in Kuwait, its fourth branch in the GCC after Oman, Saudi Arabia and Dubai.
The Syrian government has canceled a deal with Kuwait's AL-Noor Financial Investment Company to build a 140,000 barrel per day refinery in eastern Syria, Oil Minister Sufian Alao said. The announcement is another setback to government efforts to attract investment to the ailing refining sector and meet domestic demand, with the country relying on two old refineries that have a combined capacity of 240,000 bpd. Noor and the Syrian government signed a memorandum of understanding in 2007 to construct the $1.7
bn refinery. Later that year they signed an agreement with British consultants Wood McKenzie for a feasibility study. Alao did not give a reason for ending the deal. He said the government remained in talks with other foreign investors for them to build two other refineries that could double Syria's capacity.
Gulfinvest International said it has defaulted on a AED200mn ($54.47mn) loan to an Abu Dhabi bank, and its guarantor is in talks to restructure it. The loan from Abu Dhabi Commercial Bank and its interest were due end of March and the company was "unable to pay at the time being", Gulfinvest said in a statement. It said the UAE's Shuaa Capital, the guarantor of the loan, has stepped in and was negotiating with the company to restructure the loan. Combined Group Contracting Company (CGC) won a tender for
civil works from Al-Ain Farms for Livestock, Abu Dhabi. The contract work AED52.50mn (KD4.15mn), will extend for six months and with one-year maintenance.
A'ayan Capital Investment Company got the approval of the Central Bank of Kuwait (CBK) to buy back or offload up to 10 percent of its issued shares for six months as of the approval date. Amar for Finance and Leasing, listed in the Parallel market, sold investment properties valued at KD1.85mn making a profit of KD85,000. The company reported that the results of the transaction will appear in its 1Q2010 financial statement.
Wataniya Telecom announced that it will be listed in Qatar Exchange within the next two weeks to become the first company outside of Qatar to be listed in the stock exchange. Kuwait and Gulf Link Transport Company announced that its whollyowned KGL Passenger Transport Services Company won a 3 years contact worth KD3.86mn.
The Investment Dar said that a court has ruled that it did not have jurisdiction on a lawsuit, which Dar filed against the Commercial Bank of Kuwait (CBK) in order to annul the sales of Boubyan Bank sales. Dar, which filed three lawsuits last year against CBK demanding the return of shares it lost in Boubyan Bank, will appeal the ruling from Kuwait's Court of First Instance, it said in a statement.
KUWAIT: The Kuwait Stock Exchange (KSE) was able to regain last week's loss as investors were picking up some selected stocks based on revealed investment intentions. Also the cleared year end corporate results along with the concluded 1Q2010 period which gives some heads up of what to expect wheeled investors motion. As measured by Global's weighted General Index, the Kuwaiti market closed the week adding 1.77 percent, at 214.10 point. On a year-to-date basis, the index gains reached 14.97 percent. Kuwait
Stock Exchange (KSE) price index was also up by 94.40 points (1.26 percent) and closed at 7,569.5 points. Total market capitalization reached KD35.13bn. Market breadth was skewed towards advancers as out of 158 shares traded this week, 74 shares advanced against 58 declining.
Trading activity was higher this week with major allocation changes in certain stocks. Total traded volume was up by 4.33 percent reaching 1.88bn shares changing hands at a total traded value of KD381.23mn (+0.86 percent compared to the week before). High volume was seen on the Services sector, accounting for 29.80 percent of the total traded volume in the market with 561.08mn shares traded. Mubarrad Transport Company was the highest volume traded for the week with 103.06mn share traded on its stock. The c
ompany was traded with its new increased capital of 29.188 percent this week. On the value list, the Services sector took the lead as well with KD117.37mn traded, accounting for 30.79 percent of total traded market value.
Zain was the most traded stock in the sector and came second on the weekly value list with KD26.32mn traded on its share. However, Boubyan Bank topped the same list with KD32.02mn traded on its share accounting for 8.40 percent of the total weekly traded value. The scrip was up by 5.66 percent this week.
Sector-wise, Global Non-Kuwaiti Index was the biggest gainer, adding 4.06 percent to its value. Ahli United Bank geared the index move with 15 percent increase in its share price. Global Industrial Index came second with an increase of 2.71 percent as gainers overweight losers in the sector. Hilal Cement Company was the top gainer in the sector, adding 21.82 percent to its share price and made it to the top gainers list. The Banking sector was another notable advancer with Global Banking Index ending the
week 2.64 percent higher. Al-Ahli Bank of Kuwait was the biggest gainer in the sector with its share price rising 12.09 percent.
On the other side, Global Food Index was the biggest loser, shedding 0.22 percent of its value. The index was dragged down by the only loser in the sector, Danah Al-Safat Foodstuff as its share price shed 1.05 percent during the week. Global Insurance Index was the only other loser, as it lost 0.14 percent of its value. Al-Ahleia Insurance Company was the only retreater in the sector, shedding 1.02 percent of its share price. Company-wise, Kuwait & Middle East Financial Investment Company topped the gain
ers list with its share price adding 52.17 percent. On the other hand, another investment company but topped the losers list this time, National International company (Holding) shed 20 percent of its share price. Global Investment Index ended the week up by 0.60 percent.
Global's special indices were up this week. Global Small Cap (Low 10) index closed up by 4.20 percent while Global Large Cap (Top 10) Index added 1.30 percent to its value. Global Islamic Sharia Index rose 0.80 percent.
Macroeconomic News
Kuwait recorded a KD6bn budgetary surplus in 2009, according to the government newly released figures. Despite the finance minister's efforts last year to increase Kuwait's non-oil revenue, however, the statistics show that the income from these sources came to no more than six percent of the total state revenue, with 94 percent of the income coming from oil.
The Central Bank of Kuwait (CBK) issued KD80mn ($277.1mn) worth of one-year treasury bonds on Wednesday, April 7, 2010, with a coupon rate of 1.25 percent. Bids for the bonds amounted to KD393mn, central bank data showed. The last issue was on March 24, for KD100mn, with 1.25 percent coupon.
Inflation in Kuwait during 2009 rose by four percent compared to the previous year, figures from the Central Statistics Department showed this week. Inflation in 2008 was 10.6 percent. Consuming prices reached a record 136 points last year, showed the figures. They were 130.8 points in 2008. Inflation of food rose 2.3 percent and it increased by 9.3 percent for the beverages and tobacco, said the figures. Textile inflation swelled by 4.9 percent, while it was 5.1 percent for housing services, they showed.
Inflation of goods and house services jumped by 5.9 percent. Inflation in educational and health services was up by 4.3 percent. The global downturn slashed growth rates across the Gulf Arab oil producing region, reducing consumer price growth from 2008 record peaks.
Oil related news
Price of Kuwaiti crude oil reached $81.07 per barrel (pb) on Tuesday, April 6, an increase of $3.89 per barrel compared to a week earlier, Kuwait Petroleum Corporation (KPC) said. The
hike in crude prices this week comes on the heels of announcement of data in the US indicating increase in new jobs, which means an easing of the global financial crisis and a certain level of recovery which would revive demand. Member countries of the Organization of Petroleum Exporting Countries (OPEC) aim to keep oil prices between $70-$80 pb to achieve balance between the interests of producers, who need continuous funding for developing and exploring new oil fields, and consumers, who suffer from grea
t economic decline due to the economic crisis.
Kuwait Oil Company (KOC) is planning to execute a project to install 31 oil wells at a cost of KD75mn in the Al-Manaqeesh and Om Qadeer oilfields. KOC is planning to dig 20 oil wells in the Al-Manaqeesh field in the west of Kuwait, in addition to the collection pipelines. The project has an estimated cost of KD54mn. As for the Om Al-Qadeer oilfield, also in the west of Kuwait KOC will dig 11 other well with accompanying collection pipelines at a cost of KD21mn.
Other local news
Warba Bank is now registered with the Central Bank of Kuwait (CBK) on the 'Operating Islamic Banks' list and the listing is effective as of April 5, virtue of recommendation by the Finance Minister, the CBK Governor said. Government Sheikh Salem Abdulaziz Al-Sabah said that the listing was virtue of articles of law 32/68, amended by law 30/2003 on creating of an Islamic Banks list in the articles and administrative sections dealing with regulation of the banking and finance activity in the State of Kuwait.
He noted that the bank is the sixth on the list, and its addition would boost competition which would in turn be in the best interest of both clients and the state's overall economy. The list thus includes Kuwait Finance House (KFH), Boubyan Bank, Kuwait International Bank, Al-Ahli United Bank, Al-Rajhi Bank branch, and now Warba Bank.
All GCC stock markets posted gains by the end of the month of March 2010. In UAE, Dubai Financial Market posted double digits gains of 15.73 percent by the end of the month. KSE concluded the month 2.88 percent higher, as measured by Global Kuwait Index.
GCC stock markets also concluded the first quarter of the year 2010 with solid gains that ranged between 2 percent to over 13 percent. The Kuwaiti market came in the lead, up by 13.27 percent by the end of 1Q2010. The Saudi market followed, up by 11.10 percent. Markets' performance will be dictated during the coming months by 1Q2010 corporate results and any sudden announcements that might either push the markets to higher grounds, or set them back, erasing some or even all their profits accumulated during
the first quarter of the year.
Kuwait Stock Exchange
Kuwait Finance House (KFH) said it had set up a joint venture with Canada's Killam Properties Inc to buy up to C$450mn of residential property in Canada. The joint venture is part of the Kuwaiti lender's plans to expand in global markets, it said. Residential real estate will be its first step to be followed with further investments in industrial, administrative, rehabilitation or senior citizens care real estate, according to market conditions, KFH said in a statement.
Kuwait Portland Cement Company said it has authorized Tamdeen Investment Company to sell at least half of its stake in Ahli United Bank. "Portland, has authorized Tamdeen to sell 15mn shares as a minimum of the total shares it owns in Ahli United Bank, which are about 30mn shares, for a price of at least $1.10 per share," equivalent to a total price of $16.5mn, Portland said in a statement. The firm said it would make a profit of about KD3.29mn ($11.40mn) if it sells at least half of its stake in the lende
r.
As per the above, Tamdeen Real Estate Company (owns 51.37 percent in Tamdeen Investment Company had completed the sale of its 51.37 percent stake in the Ahli United Bank (AUB) and would generate earnings of nearly KD50.34mn. These gains would be recorded in 2Q2010 financial statements.
National Bank of Kuwait (NBK) said it was considering buying a stake in Garanti Bank as Turkey was one of the emerging world's most attractive banking sectors. "NBK wants to expand in Turkey, a country that has a lot of potential," said NBK's chief executive, Ibrahim Dabdoub. General Electric said in February it would sell its 20.85 percent stake in the Turkish lender, currently valued at $4.3bn. NBK is the first bank to come forward publically and declare its interest.
There has also been speculation that private equity funds might be eyeing part of the stake. Kuwaiti logistics firm Agility will postpone the release of its 2009 financial results until April 11 as it tries to reach a settlement with the US government on a fraud case. Agility, which had already delayed the results to April 6, said in a statement this week that it was waiting to see "whether or not it can resolve a legal dispute with the US government." The company said that trading in its shares will conti
nue to be halted. Agility, formerly Public Warehousing Co KSC, is in talks to resolve an indictment accusing it of overcharging the US. Army on supply contracts in Iraq, Kuwait and Jordan. If no settlement is reached by April 11, Agility will announce the results after making "enough provisions.
Highlights of the week
Spain is seeking to intensify its relationship with Kuwait in light of the five-year development plan recently announced by the Gulf state, with this strengthening of ties expected to present many opportunities for joint ventures between the two countries, according to Pablo Cascon, the Commercial Attache at the Spanish Embassy in Kuwait. Created in 2006, Investinspain, a government agency dedicated to promoting and attracting foreign investment to Spain, is part of the Spanish Ministry for Industry, Touri
sm and Trade's Secretariat for Commerce. As a public body, Investinspain informs potential investors about the various green field opportunities for investments, welcoming interest in both public and private investments. With an extended network of offices worldwide, Investinspain is shortly to open an office in Kuwait, its fourth branch in the GCC after Oman, Saudi Arabia and Dubai.
The Syrian government has canceled a deal with Kuwait's AL-Noor Financial Investment Company to build a 140,000 barrel per day refinery in eastern Syria, Oil Minister Sufian Alao said. The announcement is another setback to government efforts to attract investment to the ailing refining sector and meet domestic demand, with the country relying on two old refineries that have a combined capacity of 240,000 bpd. Noor and the Syrian government signed a memorandum of understanding in 2007 to construct the $1.7
bn refinery. Later that year they signed an agreement with British consultants Wood McKenzie for a feasibility study. Alao did not give a reason for ending the deal. He said the government remained in talks with other foreign investors for them to build two other refineries that could double Syria's capacity.
Gulfinvest International said it has defaulted on a AED200mn ($54.47mn) loan to an Abu Dhabi bank, and its guarantor is in talks to restructure it. The loan from Abu Dhabi Commercial Bank and its interest were due end of March and the company was "unable to pay at the time being", Gulfinvest said in a statement. It said the UAE's Shuaa Capital, the guarantor of the loan, has stepped in and was negotiating with the company to restructure the loan. Combined Group Contracting Company (CGC) won a tender for
civil works from Al-Ain Farms for Livestock, Abu Dhabi. The contract work AED52.50mn (KD4.15mn), will extend for six months and with one-year maintenance.
A'ayan Capital Investment Company got the approval of the Central Bank of Kuwait (CBK) to buy back or offload up to 10 percent of its issued shares for six months as of the approval date. Amar for Finance and Leasing, listed in the Parallel market, sold investment properties valued at KD1.85mn making a profit of KD85,000. The company reported that the results of the transaction will appear in its 1Q2010 financial statement.
Wataniya Telecom announced that it will be listed in Qatar Exchange within the next two weeks to become the first company outside of Qatar to be listed in the stock exchange. Kuwait and Gulf Link Transport Company announced that its whollyowned KGL Passenger Transport Services Company won a 3 years contact worth KD3.86mn.
The Investment Dar said that a court has ruled that it did not have jurisdiction on a lawsuit, which Dar filed against the Commercial Bank of Kuwait (CBK) in order to annul the sales of Boubyan Bank sales. Dar, which filed three lawsuits last year against CBK demanding the return of shares it lost in Boubyan Bank, will appeal the ruling from Kuwait's Court of First Instance, it said in a statement.
© Kuwait Times 2010
