KUWAIT CITY, Jan 4: Kuwait stock slid sharply lower below the 7000 benchmark amid sell-offs in select blue chips on Monday. The index plunged 114.4 points erasing the modest rise in the previous session. Zain and National Bank of Kuwait paced the decline and some of the mid-priced positions too eroded on profit taking. The market wound up at 6890.9 points amid a surge in volume turnover. The weighted index shed 9.32 points to settle at 376.43 points.
National Bank of Kuwait dived 3.5 points erasing an identical gain on Thursday. The counter saw over 0.69 million shares change hands. Zain slid 5.8 percent to settle at KD 0.960 with volume turnover of 3.7 million shares.
Zain’s major stake holder Kharafi Group, is in the process of selling a substantial part of its shares to a consortium led by India’s Vavasi Group.
“ We were told the takeover would take four months, so most expectations are that the deal will now not take place, but we will have to wait and see,” Reuters quoted Naser Al-Nafisi, general manager for Al Joman Center for Economic Consultancy. “On the last two days of the year, investors pushed the market up above 7,000 points, now it’s the new year prices are correcting from these artificial levels,” he added. “After every quarter and especially the end-of-year, investors try to push up prices to increase the value of their portfolios.”
Agility dipped 50 fils after closing flat in the previous session and posted a volume turnover of 9.4 million shares. The logistics service provider has reported a net income of KD 40.5 million in the third quarter - an increase of 15 percent, compared to same period of 2008. Earnings per share stood at 40.33 fils, a 19 percent increase over Q3 2008. Wataniya Telecom was down 20 fils at KD 1.520 on thin volume turnover. National Industries Group did not budge from its earlier close of KD 0.305 after trading over 1.2 million shares.
Among other notable decliners, Kuwait Cement Company dropped 40 fils to wind up at KD 0.520 and Heavy Engineering Industries and Shipbuilding Co eroded 25 fils to close at KD 0.475. United Gulf Bank dropped 25 fils whereas Kuwait Building Materials Manufacturing Co climbed 25 fils bucking the market trend.
Wiping
Banking stocks closed mostly in red. Gulf Bank fell 10 fils to KD 0.290 wiping an identical rise in the previous session. Burgan Bank was down 20 fils at KD 0.320 after trading over 1.2 million shares while Commercial Bank of Kuwait and Al Ahli Bank were not traded during the session.
Bank of Kuwait and Middle East too was open on Monday while Kuwait Finance House gained 20 fils recouping the loss on Thursday. Boubyan Bank held the ground steady at KD 0.500.
The market has been downbeat last week as profit taking and intermittent sell-offs weighed on some of the heavyweight after the earlier gains. The index closed lower in three of the five sessions shedding 51 points. It has eroded 8 percent year-to-date in 2009.
The bourse had rallied strongly in April and May, but retreated in the middle of June as investor sentiments were battered by weak earnings and sliding oil prices besides other factors.
“We still recommend caution until the index closes above 7,140 points, which also serves as resistance level,” Global Investment House said in a research note. “Speculators who entered the market can hold with a stop-loss below 6,850 points.”
In the bourse related news, Kuwait Stock Exchange announced the addition of the shares of the following companies to the Option Market effective Jan 4, 2010: International Financial Consulting Company, Ikarus Petroleum Industries Company.
Al Reef Real Estate Company has been established as a Kuwaiti Closed Shareholding Company with a capital of KD 2.6 million distributed on 26 million shares at 100 fils per share.
The company is active in the ownership, acquisition and sales of properties and lands in and outside Kuwait.
Arkan Rocks Company has been established as a Kuwaiti Closed Shareholding Company with a capital of KD 1.3 million divided on 13 million shares at a nominal value of 100 fils each. The company’s activities include the import, export, sale and acquisition of aggregates as well as the manufacturing, acquisition and management of plants related to this industry.
Investment stocks too buckled under the moderate sell-offs. National Investment Co dropped 25 fils to close at KD 0.340 while KIPCO was down 20 fils at KD 0.465. Coast Investment and Development Co fell 10 fils whereas Securities Group Company pulled 25 fils lower to KD 0.255.
Kuwait Financial Centre Company flunked 6 fils whereas International Investment Group inched 1 fils lower to KD 0.051. Aayan Leasing and Investment co added 5 fils whereas Bayan Investment Co was down 1 fils at KD 0.068. Global Investment House eroded 5 fils erasing the gains on Thursday while Osoul Investment Co fell 1 fils.
KAMCO dropped 25 fils to settle at KD 0.380 and Kuwait Invest Holding Company was down 8 fils at KD 0.238.
Al Madar Finance and Investment Co fell 5 fils and Al Safat Investment Co closed 6 fils lower at KD 0.074. Al Madina For Finance and Investment Company was up 1 fils at close whereas Noor Financial Investment slipped 5 fils. National Real Estate Co dropped 10 fils and Tamdeen Real Estate Co shed 15 fils to wind up at KD 0.285.
In the recent earnings, Salbookh Trading Company announced that it posted a net loss of KD 589,961 and loss per share of 3 fils in the three period ended 30 September compared to a net profit of KD 463,234 and earnings per share of 4.5 fils for the same period in 2008.
 In the nine-month period ended the net loss reached KD 1,738,159 while the loss per share read 8.8 fils.
Industrial and Financial Inv. Co (IIC) has posted a loss of KD4,169,632 and loss per share of 10.26 fils in the three months period ended Sep 30 as compared to a loss of KD 1,619,336 and loss per share of 3.97 fils for the same period in 2008. In the 9-months period it incurred a loss of KD 5,661,693 and loss per share of 13.92 fils.
The market opened on weak note and eroded steadily as investors exited high priced positions amid negative sentiments. It continued to head south as trading floor showed lack of trading appetite and closed sharply below the opening level.
Top gainer, National Cleaning Co spiked 7.6 percent to KD 0.140 while Arabi Holding Group climbed 7.2 percent to stand next.
Securities Group Co slid 8.9 percent, the steepest decliner of the day, while International Fianncial Advisors topped the volume with 51.36 million shares changing hands during the session.