KUWAIT CITY, Feb 21: Kuwait stocks eked modest gains on Sunday, extending the gains to the second straight session. The index climbed 22.4 points in volatile trade led helped by select blue chips and industrials. The market, has closed higher in 13 of the past 14 days, as the trading floor soaked in the anticipated Zain stake deal. It winded up at 7418.9 point after slipping briefly into red past the mid-session.
The weighted index edged 1.99 points higher to settle at 426.57 points whereas the volume turnover slipped 8.2 percent to close below the 600 million mark at 596.1 million. It had hit a high of 913 million on 15th and traded above the 600 mark in the past 5 sessions. The sentiments remains positive but investors are likely to look for cues beyond the Zain deal to sustain the momentum. 
Sectorwise, the industrials and investment sectors topped rising 0.7 percent each while food incurred the heaviest loss shedding 1 percent during the session. Banking sector inched 0.1 percent higher while services gained 0.2 percent. Real estate eased 0.2 percent. Commercial Bank of Kuwait climbed 2 percent to settle at KD 0.960 adding to an identical rise on Thursday while Zain rose 1.5 percent on back of 10.1 million shares, extending its gains to the fourth straight session. The telecom major had announced earlier last week that its board had accepted a multi-billion offer from India’s Bharti Airtel to buy the Kuwaiti firm’s African assets.
Agility meanwhile did not budge from its previous close of KD 0.690 after moving in a 20 fils range. The counter saw over 5.76 million shares change hands during the day. The logistics major had been in the media over the alleged fraud and indictment in connection with US defense contract. Wataniya Telecom too held the ground unchanged at KD 1.680.
The market performance had been robust during the past week buoyed by Zain stake sale and its positive spillover effect on the Kharafi group companies which make up over 25 percent of the total market capitalization. The index closed higher in four of the five sessions, adding 219 points week-on-week. It gained 396 points so far during the month and is trading 8 percent higher year-to-date.
KSE had eked 0.29 percent rise in January. It closed higher in 10 of the 20 sessions, gaining 20 points from start of the month to close. The annualized volatility chalked 11.36 while average price-to-earning (PE) ratio read 11.36. The market capitalization stood at $ 103.44 billion.
Gainers
Among other gainers, Kharafi Group flagship company, National Industries Group eked 10 fils rise on back of 12.73 million shares. It closed at KD 0.325 adding to the gains in the previous session. Kuwait Cement Company jumped 30 fils to close at KD 0.740 and saw a volume of 3.4 million shares. Heavy Engineering Industries and Shipbuilding Co slipped 10 fils whereas Kuwait Portland Cement Co added 20 fils to wind up at KD 1.320.
In the bourse related news, Kuwait Food Co. (Americana) announced the financial statements for the year ended 31/12/2009. The profit amounted to KD 36,276,000 and earnings per share of 93 fils against KD 35,223,000 and earnings per share of 90 fils in the previous session. Also recommended cash dividends of 60% of the nominal value of shares.
Banking stocks were largely subdued during the day. National Bank Gulf Bank dropped 20 fils paring the robust gain on Thursday. It closed at KD 1.240 after fluctuating in a 40 fis range and posted a volume of 2.53 million shares. Bank of Kuwait and Middle East did not budge from its previous close of KD 0.510 and Burgan Bank closed flat at KD 0.355 after vacillating in a narrow range.
Kuwait Finance House was unchanged at KD 0.355 after posting strong gains on Thursday. Gulf Bank too did not move in either direction and so did Al Ahli Bank which closed at KD 0.500. Fitch Ratings has affirmed ABK’s ratings at Long-term Issuer Default (IDR) ‘A-’, Short-term IDR ‘F2’, Individual ‘C/D’ and Support ‘1’. The Support Rating Floor is affirmed at ‘A-’. The Outlook for the Long-term IDR is Stable.
Investment stocks closed mostly in the green. National Investment Co took in five fils to wind up at KD 0.405 rebounding from profit taking in the previous session while International Financial Advisors Co held the ground steady at KD 0.445. The company has won the Central Bank’s nod to repurchase or sell a 10% maximum of its issued shares over a six-month period starting from on February 13, 2010. IFA is committed to abide by CBK’s rules and regulations.
KIPCO rose 5 fils on back of 2.6 million stocks while Kuwait and Middle East Financial Investment Company was down 2 fils at KD 0.081.Aayan Leasing and Investment Company edged 2 fils higher whereas Bayan Investment Co closed flat. Bayan announced that the Central Bank of Kuwait (CBK) has approved its request to purchase or sell a 10% maximum of its fully-paid issued shares for further 6 months, from Feb 18, 2010 to Aug 18, 2010.
Global Investment House too did not budge from its previous close of KD 0.091 after trading 5.48 million shares and Kuwait Financing and Investment Co added 8 fils. KAMCO climbed 25 fils on low volume while Al Deera Holding Co slipped 2 fils.