KUWAIT CITY, June 6: Kuwait stocks retreated on Sunday nixing the three-day gains. The index dropped 24.9 points in volatile trade weighed by National Bank of Kuwait and Wataniya Telecom even as the trading floor remained largely subdued. The market has been trading in a narrow range since the start of the month after posting sharp decline in May.
The bourse wound up at 6708.60 points clawing back from the steeper loss earlier in the session. The weighted index eased 1.45 points to settle at 409.92 points while volume turnover dived 37.3 percent to 110.52 million — a fresh low of the year. The market liquidity has been acutely hit in the past weeks as investors toed the sidelines in absence of strong cues after the Zain stake deal.
The sectoral indices all edged lower except industrials which rose 0.3 percent. The banking sector fell 0.2 percent while investment was down 0.8 percent. Insurance dropped 1 percent, the biggest loser of the day, while real estate shed 0.4 percent. Services sector dropped 0.4 percent and food eroded 0.6 percent. Non-Kuwaitis closed 0.3 percent lower. Among the prominent decliners, National Bank of Kuwait was down 20 fils at KD 1.180 after stagnating in the previous session. It traded over half million shares during the day. Wataniya Telecom shed 20 fils , erasing an identical gain on Thursday. It wound up at KD 1.680 with thin volume turnover.
Agility held the ground unchanged at KD 0.455 after trading 1.08 million shares while Zain was not traded during the day. The telecom service provider had gained 1.52 percent during May and has risen 320 fils since the start of the year.
Banking stocks closed mixed. Gulf Bank rose 5 fils to end at KD 0.420 while Commercial Bank rose 30 fils, extending its gaining streak. Al Ahli Bank closed flat at KD 0.500 whereas Ahli United Bank fell 5 fils to KD 0.485. Burgan Bank dropped 10 fils whereas Kuwait Finance House did not budge from its previous close of KD 0.990. The counter saw over 1.9 million shares change hands during the session.
Investment stocks moved in a tight range. International Financial Advisors fell 2 fils to close at KD 0.062 after trading 1.08 million shares while National Investment Co was stagnant at KD 0.350. KIPCO too was unchanged at KD 0.350 after posting a volume turnover of 8.74 million shares. Kuwait Projects Company has netted a profit of KD 4.7 million or 4.22 fils per share, for the first three months of 2010 compared to KD 9.2 million or 8.31 fils per share, for the same period last year.
Subdued
Trading remained subdued, with market heavyweight Zain suspended for a sixth trading day pending the payment of its 2009 dividend, with this expected to be completed by Thursday, Reuters quoted a Kuwait trader, speaking on condition of anonymity. “We are witnessing heavy selling pressure on KFH — people think the negative news from Malaysia has not yet been priced in, especially in light of a lack of feedback from management,” the analyst added. “Investors fear there may be more provisions to come.”
The market opened weak and slid lower in early trade as investors cashed in their positions after the modest gains eked in the past three sessions. The index continued to erode and bottomed at 6691.8 points half way into the session. The trading floor saw an uptick in buying thereafter and wound up with moderate losses.
Mirroring the dull mood, the market spread was biased towards the decliners. 16 stocks advanced while 55 closed lower. Of the 98 counters active on Sunday, 26 closed flat. 2374 deals worth KD 16.608 million were transacted — paring a quarter of its value from the previous session.
The top gainer of the day, United Industries Co rallied 5.9 percent to close at KD 0.089 while Amar For Finance and Leasing Co climbed 5.5 percent to stand next. Kuwait Financing and Investment Co dived 11.7 percent — the biggest loser of the day, while Gulf Finance House topped the volume with over 22 million shares changing hands.
Other losers on Sunday include National Industries Group which dropped 20 fils to settle at K 0.295 while Combined Group Contracting Co jumped 40 fils to wind up at KD 1.720. United Projects Group fell 10 fils to KD 0.305 whereas Kuwait Food Co (Americana) was up 20 fils at KD 1.440.
Mixed
The bourse had been mixed during the past week. It closed higher in 4 of the 5 sessions but shed 79 points week-on-week. The index has added 13 points since the start of the month and is trading 3 percent lower year-to date. KSE had retreated 8.22 percent during May battered by low volume and general lack of buying interest.
Meanwhile Kuwait Stock Exchange in its latest move has suspended the following companies for failing to submit their financial results in stipulated time. They are :-
Safat Global Holding, Investment Dar Company, International Leasing and Investment Co, Villa Moda Life Style, Al-Ahleia Holding Company, Securities House Company, International Investment Group, Aayan Leasing and Investment Company, Pearl of Kuwait Real Estate Co, Grand Real Estate Projects Co , International Investor Company, GulfInvest International Co, Investors Holding Group Co, Network Holding Co , Al-Abraj Holding Co, GulfInvest International Co, Equipment Holding Co and Network Holding Co were barred for carrying forward losses exceeding 75 percent of capital.

In the bourse related news, Grand Real Estate Projects Co. has announced its results for its fiscal year ending on 31/12/2009 . It incurred a net loss of KD 25,883,314 and a loss per share of 57.02 fils as against a net loss of KD 31,534,271 and loss per share of 69.46 fils in the previous year. The Board of Directors has recommended no dividend payout for 2009.
Industrial and Financial Inv Co announced its results for the First Quarter for the 3 months ending on 31/3/2010 as follows: Net Loss KD 161,191 Loss per share fils 0.40 Net Loss same period last year KD 2,044,913 loss per share same period last year fils 5.03.
Jeeran Holding Co has incurred a net loss of KD 1,581,237 and loss per share of 11.57 fils in the first three months of 2010 as compared to net loss of KD 494,305 and loss per share of 6.82 fils in the same period last year. The Board of Directors recommended no dividend payout for the fiscal year.
Network Holding Co too has suffered a first quarter net loss of KD 13,518,904 and loss per share of 150.7 fils. This compares with a net loss last year of KD 28,583,572 and loss per share of 324.8 fils.