KUWAIT CITY, March 9: Kuwait stocks saw a strong rebound in slightly volatile trade on Tuesday stemming the two-day decline. The index climbed 55.1 as buying picked up in select blue chips and most of the industrial stocks. Zain and National Bank of Kuwait paced the day’s advance even as profit booking continued to weigh on few counters. The sentiments were mixed as investors await the outcome of the ongoing Zain deal talks.
The market wound up at 7440.70 points after trading in red in the first half of the session. The weighted index rose 6.59 points to settle at 433.27 points while the volume turnover rose 9.6 percent to 509.37 million. It had swelled to 913 million on 15th Feb, the highest level of the year, and was largely robust in the past weeks.
Sectorwise, industrials outshone others rallying 1.8 percent while investment came in second gaining 1.1 percent. Insurance shed 0.5 percent, the worst performer of the day, while banking climbed 0.9 percent. Real estate rose 0.6 percent.
Zain rallied 40 fils, recouping the losses in the last two sessions. It closed at KD 1.320 and posted a volume turnover of 6.14 million shares. The telecom major is in exclusive talks to sell some of its African assets to India’s Bharti Telecom in a $9 billion deal.
National Bank of Kuwait gained 20 fils after closing in the red on Monday. It closed at KD 1.160 and the counter saw 22.9 million shares change hands during the session. The scrip had jumped 20.75 percent in February and is up 40 fils since the start of the year.
“We have seen a good rebound with volumes back in the market again,” Reuters quoted Essa al-Hasawi, dealer at Noor Financial Investment Co. “Zain represents about 20 percent of the index so any move in the stock drives the market higher.”
“NBK is cheap compared with the other banks in the regional index. We are positive on the entire market especially after the Zain announcement,” he added
Kuwait Finance House however dipped 60 fils adding to the loss on Monday. It posted a volume turnover of 3.5 million shares. The Islamic lender has chalked total revenues for 2009 of KD 766.703 million, and gross profits of 316.515 million. Net profit for shareholders reached KD 118.741 million, and profit per share worked out at 52 fils. The board has recommended cash dividends distributions of 25 percent and bonus shares of 8 percent.

Budge
Agility did not budge from its previous close off KD 0.640 after trading just over 1 million shares and Wataniya Telecom too followed suit. It was stagnant at KD 1.600. The stock had gained 9.21 percent in February and is up 60 fils since the start of the year.
The market had been mixed so far in the week and has gained 10 points from Sunday’s opening level. It had gained 52 points so far in the month buoyed by the Zain stake sale and its positive impact on the market sentiments and is trading 7 percent higher year-to-date.
The top gainer of the day, Kuwait Pipes spiked 9.6 percent to close at KD 0.285 while Kuwait Gulf Links stood next with 7.8 percent gain. Warba Insurance Co slid 9.09 percent, the steepest decliner of the day, while International Financial Advisers topped the volume with 80.16 million shares changing hands. 7688 deals worth KD 77.87 million were transacted — up 17.7 percent in value over previous session.
National Industries Group climbed 15 fils after pulling lower in the previous session. It closed at KD 0.395 and posted a volume turnover of 3.3 million shares. Kuwait Cement Co slipped 10 fils to wind up at KD 0.690 whereas Gulf Cables jumped 40 fils to close at KD 1.740. Kuwait Portland Cement too rose 40 fils, almost recouping the steep loss on Monday and closed at KD 1.300.
Boubyan Petrochemical Co rose 10 fils to settle at KD 0.540 whereas Mena Holding Co was up 20 fils after trading 4.99 million shares. Kuwait Food Co ( Americana) climbed 40 fils to end at KD 1.640 whereas Jazeera Airways held the ground steady at KD 0.212. Oula Fuel Marketing Company and United Projects Group dropped 20 fils each while NAPESCO added 15 fils.
Banking stocks closed mixed. Gulf Bank fell 5 fils to KD 0.365 whereas Commercial Bank of Kuwait rose 20 fils on low volume turnover. It closed at KD 0.950. Al Ahli Bank closed flat at KD 0.485 whereas Bank of Kuwait and Middle East fell 10 fils.
Burgan Bank too was down 10 fils after stagnating in the previous session while Boubyan Bank edged 5 fils higher. The bank has posted a loss of $179 million in 2009 against a profit of $6.4 million the previous year. The Islamic lender had taken $102 million in provisions, thus negatively affecting its financial results.

Dropped
Investment scrips moved both ways in a narrow range. International Financial Advisers dropped 4 fils to KD 0.245 while National Investment Company added 20 to close at KD 0.430. KIPCO was up 10 fils at KD 0.520 whereas Securities House Co fell 2 fils.
In the bourse related news, Future Kid Entertainment & Real Estate Company has posted a net profit amounting to KD 456,225 and earnings per share of 4.53 fils compared to a net profit of KD 764,572 and earnings per share of 7.12 fils for the year 2008. The Board of Directors has also recommended distributing retaining earnings for the financial year 2009 and increasing the company’s capital by 10 percent at a 100 fils nominal value and 10 fils premium issue. National Bank of Kuwait announced the results of its Ordinary and Extraordinary General Meeting held on March 7. It has approved the distribution of cash dividends at 40 percent of the share nominal value and bonus shares at 10 percent of the paid up capital for the financial year 2009. It has also given its nod to increase the bank’s capital by 10 percent of the paid up capital following the addition of bonus shares at a nominal value of 100 fils and premium issue of 400 fils per share. KIPCO Asset Management Company (KAMCO) has won the the Central Bank of Kuwait approval on its renewal request to purchase or sell up to 10 percent of its issued shares over a six-month period effective the end of the current approval on March 16, 2010. CBK’s approval is subject to KAMCO’s commitment to the rules and regulations of the Central Bank.
Kuwait’s Investment Dar said it was considering along with creditors’ to use a $5.2 billion state rescue facility. The Islamic investment firm said in a statement that the government’s aid package would set the legal framework for its restructuring process, amid the dissent of some creditors and investors that have opposed its restructuring plan. Credit Suisse is advising Dar on the restructuring plan.