KUWAIT CITY, Sept 1: Kuwait stocks kicked off the month on a sour note as profit booking weighed on select counters after the 3-day gains. The index fell 10.7 points in volatile trade led by Wataniya Telecom and Al Ahli Bank The trading floor sentiments were weak as selling dominated for most part of the session. The blue chips closed mixed whereas some of the mid-caps nudged higher on speculative buying. The market ended at 6,677.90 points clawing back from steeper losses earlier in the day while weighted index edged 0.88 points up to settle at 436.72 points. The volume however tapered further as investors remained reluctant to take up fresh positions. It fell 0.7 percent to 132.56 million after extending the decline to the fourth straight session.

Wataniya Telecom dropped 20 fils to end at KD 1.780 erasing the gains on Tuesday. Al Ahli Bank shed 10 fils to close at KD 0.530 and Commercial Bank followed suit . It wound up at KD 0.880. The stock had slipped 1.11 percent in August and has fallen 50 fils since the start of the year.
Among the heavyweights Zain rose 20 fils after stagnating in the previous session. It ended at KD 1.220 and saw a volume turnover of 9.8 million shares. Agility was up 10 fils at KD 0.445 partly recouping the loss on Tuesday. The logistics firm has won an extension of its warehousing contract with US army for a period of 6 months.

Other notable movers include Safwan Trading and Contracting Co which gained 16 fils with thin trading while Kuwait Gulf Links edged 2 fils higher to settle at KD 0.186. Future Communications Co and eased 5 fils and United Gulf Bank eroded 10 fils to finish at KD 0.320. National Industries Group stagnated at KD 0.345 after trading 1.29 million shares and other industrials too were mostly muted. The market opened choppy and moved sideways in early session as investors remained toed caution. The index pulled lower as investors exited select positions amid bearish sentiments and drifted below the opening mark after first hour of trading. It continued to erode as selling intensified and hit the day’s lowest level of 6663.6 points in the final minutes. However an uptick in buying at close helped pare the losses.
Banks accounted for 60 percent of combined consolidated profits in the first half of 2010, excluding Zain’s exceptional gain from its African asset sale, Reuters quoted Naser al-Nafisi, general manager for Al Joman Center for Economic Consultancy . “These results show banks are a safe haven and the best sector in the market,” he added.

Gainer
The top gainer of the day, Safwan Trading Co jumped 6.5 percent to close at KD 0.360 while Ithmaar Bank climbed 5.19 percent to stand next. Al Safwa Group Co dived 8.6 percent, the steepest decliner of the day, while Kuwait International Bank topped the volume with 12.52 million shares changing hands.
The market spread was skewed towards the losers. 26 stocks advanced while 38 closed lower. Of the 103 counters active on Wednesday, 38 closed flat. 2142 deals worth KD 28.660 were transacted -a 14.7 percent increase in value from the previous session. KSE, with 209 listed companies, is the second largest bourse in the region.
The sector closed mostly in red. Banking sector fell 0.2 percent while investment inched 0.1 percent lower. Insurance rose 0.3 percent, the best performer of the day, while real estate eroded 0.3 percent. Industrials too was down 0.3 percent and services slipped 0.1 percent. Food dropped 0.8 percent, the biggest loser whereas non-Kuwaiti added 0.1 percent.

The bourse has been positive so far during the week and has gained 31 points since Sunday’s opening. It had added 33.7 points during whole of August but is trading 3 percent lower year-to date.
The banking stocks ended mixed. National Bank of Kuwait continued to stagnate at KD 1.380 while Gulf Bank gained 10 fils on back of 1.84 million shares. It wound up at KD 0.540. The lender had soared 20.45 percent during August and is up 240 fils since the start of the year.
Ahli United Bank rose 5 fils to end at KD 0.530 and Burgan Bank followed suit to close at KD 0.445 with a volume of 3.94 million shares. The lender has posted a net loss of KD 6.9 million in the first half after making provisions of KD 50.4 million. The capital adequacy ratio chalked a healthy 17.3 per cent.
Kuwait Finance House held the ground unchanged at KD 1.100 after vacillating ina 20 fils range while Boubyan Bank shed 10 fils trimming the strong gains on Tuesday.

Bank stocks had gained momentum in the second half of August on reports of government approval to the local lenders to finance the multi-billion projects. The government would also provide guarantees amounting to KD 10 billion to back these loans.
Investment stock were largely subdued. National Investment Co fell 10 fils after trading 1.4 million share whereas KIPCO did not budge from its earlier close of KD 0.400. Kuwait Financial Centre was flat at KD 0.116 and Aref Investment Group inched 1 fils higher.
Bayan Investment Co fell 1 fils and Global Investment House was unchanged at KD 0.059. Al Deera Holding and Al Madina Finance too unchanged whereas Al Tamdeen Investment slipped 5 fils. In the insurance sector, Ahlia Insurance Co added 15 fils and Kuwait Reinsurance Co dropped 20 fils after trading 4.12 million shares.
In the bourse related news, Al Safat Real Estate Company has incurred a net loss of KD 682,750 in the second quarter and loss per share of 2.84 fils compared to a profit of KD 267,706 and earnings per share of 1.12 fils for the same period last year. In the first half, loss amounted to KD 474,438 and loss per share worked out at 1.98 fils .

Securities Group Company has posted a second quarter net profit of KD 525,331 and earning per share of 2.06 fils compared to KD 1,483,124 and earning per share of 5.81 fils in the same period last year.
Gulf Cables and Electrical Industries Company has chalked a net profit of KD 19,092,520 and earnings per share of 91 fils compared to a profit of KD 1,224,114 and earnings per share of 6 fils for the same period last year. In six-month period ending June 30, the net profit touched KD 22,069,735 and earnings per share worked out at 105 fils .
Kuwait Stock Exchange announced suspension of shares trading of the following companies for failing to submit their financial results in the stipulated time : Safat Global Holding, Investment Dar Company, International Leasing and Investment Co, Villa Moda Life Style, Securities House Company, International Investment Group, Aayan Leasing and Investment Company, Network Holding Co, Al-Ahleia Holding Company, Pearl of Kwt. Real Est Co, Kuwait Investment Company, International Investor Company, Industrial and Financial Inv Co, Securities Group Company, Aref Investment Group, Gulfinvest International Co, Kuwait Financing and Investment Co, Al Madar Finance and Investment Co, Al-Safat Investment Co, Kuwait Bahrain International Exchange Co, Equipment Holding Co, Gulf Finance House, Al-Abraj Holding Co.