KUWAIT CITY, March 17: Kuwait stocks retreated further on Wednesday, adding to the hefty losses in the previous session. The index shed 28.5 points weighed by selling in select blue chips while banking heavyweights posted modest rebound on bargain buying. Industrials too attracted investors’ interest after being dragged by profit booking on Tuesday.
The market wound up at 7415.8 points while the weighted index fell 1.63 points to settle at 432.26 points. The volume turnover tapered 11.7 percent to 317 million after trading at robust levels in the first week of the month. The market mood is laced by caution as investors await the culmination of the Zain’s Africa stake sale talks with India’s Bharti Telecom.
Sectorwise, industrials topped with a rise of 0.5 percent while insurance was hit the worst. It slid 7.3 percent during the session. Investment sector edged 0.2 percent higher whereas real estate and services were down 0.5 percent and 0.4 percent respectively. Food sector inched 0.1 percent lower.
Wataniya Telecom and Agility paced the day’s decline. The telecom service provider dropped 2.5 percent to close at KD 1.560 after stagnating on Tuesday while Agility was down 3.2 percent at KD 0.600. The counter saw a volume turnover of 1.4 million shares. The stock had climbed 8.7 percent in February and is trading 30 fils higher since the start of the year.  Zain rose 20 fils recouping part of its losses in the previous day. It wound up at KD 1.360 and posted a volume turnover of 3.2 million shares. The company expects net proceeds of up to $5bn from the Africa stake sale after paying certain liabilities. The remaining part of the returns will be reflected in the company’s second quarter accounts
“The big word in the market is anticipation — we’re all waiting on Zain,” Reuters quoted a Kuwait-based analyst who asked not to be identified. “The market is holding up well — having a down day on low volumes is okay.”  “Regionally we were seeing more foreign money coming in and if you’re going to buy Kuwait, you want the blue chips,” said the analyst. “With uncertainty over Zain, the two top targets would be NBK and KFH”.
 The top gainer of the day, Tijara and Real Estate Investment Company spiked 10 percent to close at KD 0.055 and Hayat Communication Co too posted an identical percentage gain. First Takaful Insurance Co saw the steepest decline while Safatec topped the volume with over 31 million shares changing hands. 5516 deals worth KD 46.5 million were transacted - down 21.9 percent from the previous day.
Positive
The market started off on a positive note and traded briefly above the red. However, it retreated on renewed profit taking in select counters and touched 7377.8 points — the lowest level of the day past the mid-session. It recovered thereafter and managed to pare the loss moderately in the final minutes.
The bourse had been downbeat so far in the week and has lost 31 points since the start of the week. It is however trading 31 points up so far in the month and is trading 8 percent higher year-to-date. The index had posted robust gains in the previous month buoyed by the Zain stake sale and its positive impact on the market sentiments. The banking stocks closed mixed. Sector bellwether National Bank of Kuwait climbed 20 fils to close at KD 1.140 on back of 1.3 million shares while Gulf Bank was stagnant at KD 0.355. It saw a volume level of 2.96 million. Al Ahli Bank dropped 10 fils to end at KD 0.475 and so did Commercial Bank. It winded up at KD 0.910 extending the loss in the previous session.
Bank of Kuwait and Middle East held the ground unchanged at KD 0.550 whereas Burgan Bank closed flat at KD 0.360. Kuwait Finance House climbed 20 fils to wind up at KD 1.140 on back of 3.9 million shares. The stock had rallied 13.46 percent in February and is trading 40 fils up year-to-date.
Boubyan Bank fell fils. The lender 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. The bank has recently completed a rights issue to increase its capital by 50 percent Industrials closed mostly in the positive region. National Industries Group added 10 fils while Kuwait Pipes rose 15 fils with a volume of 5 million shares. Gulf Cables climbed 20 fils to KD 1.760 while Shuaiba Industrial Co closed 10 fils higher at KD 0.242. Boubyan Petrochemical Co gained 10 fils while Qurain Petrochemical Industries fell 2 fils.
Flat
NAPESCO was flat at KD 0.315 after fluctuating in a 10 fils range while IFA (Hotels and Resorts) shed 25 fils with thin trading volume. United Gulf Bank fell 10 fils whereas Egypt Kuwait Holding was up 10 fils at KD 0.630. The company has decided to distribute 5 percent cash dividends to its shareholders who are registered as of March 29. The distribution will start on April 1, 2010.
In the bourse related news, Gulf Investment House has received the Central Bank of Kuwait approval for the renewal of the validity request filed by the company to acquire or sell up to 10 percent of its issued and fully paid shares over a six-month period starting from March 17, 2010. Gulf Investment House is bound to conform with the rules and regulations of the Central Bank.
Al-Mal Investment Company announces the approval of the Central Bank of Kuwait of the financial statements for the year ended Dec 31, 2009. The company recorded loss of KD 12,363,566 and loss per share of 24.09 fils. Against a loss of KD 8,266,190 and loss per share of 16.46 fils in 2008
Al Tamdeen Investment Company has been granted approval by the Central Bank of Kuwait for the renewal of the validity request to acquire up to 10 percent of its issued shares over a six-month period starting from the end of the current approval on April 1, 2010.
Tamdeen is bound to adhere to the rules and regulations of the Central Bank of Kuwait.
Kuwait Stock Exchange announced the suspension of following companies on account of failure to submit their financial statements in the stipualted time. Pearl of Kuwait Real Estate Company, Al Safat Global Holding Company, Network Holding Company, Dar Investment Company, International Leasing, Investment Company Villa Moda Lifestyle Company and Al Abraj Holding Company.