KUWAIT CITY, Oct 13: Kuwait stocks gained further ground on Wednesday, after posting modest rise in the day before. The index climbed 20.8 points in moderately volatile trading led by Zain and some of the Kharafi Group linked shares. Lenders were mostly subdued whereas profit booking dragged select mid-prices stocks. The sentiments were mixed even as investors digested the news that Etisalat is mulling various options to finance its bid for Zain’s 46-percent stake. The bourse closed at 7075.50 points after swaying in a broad range during the session while weighted index rose 4.17 points to close at 482.85 points . The volume meanwhile ebbed after swelling past the 400 million mark in the previous session. 339.61million shares were transacted - down 20.3 percent from Tuesday.

Zain rallied 40 fils on back of 10.9 million shares after stagnating on Tuesday and closed at KD1.420. The telecom service provider has posted a net income of KD 976 million in the nine months to Sept 30. Agility rose 10 fils adding to the gains in the previous session. The share was buoyed earlier in the week after the dismissal of a case against the company’s subsidiary by a US judge. Wataniya Telecom did not budge from its previous close of KD 1.860.
Other advancers include Al Ahli United Bank which jumped 40 fils to end at KD 0.620 recouping the loss on Tuesday. Gulf Cables too climbed 40 fils to settle at KD 2.080 while Kuwait Food Co (Americana) soared 80 fils to wind up at KD 1.600. The stock had gained 6.33 percent in September and is trading 140 fils higher since the start of the year. Kuwait Gulf Links crept 6 fils higher after ending in red on Tuesday.

Kuwait Portland Cement rose 20 fils to KD 1.580 while Kuwait Pipes added 10 fils to close at KD 0.325. Combined Group Contracting Co dived 100 fils stemming the strong gains earlier in the week while Kuwait Foundry Co dropped 20 fils.
The market opened weak but clawed back in early trading as investors eyed select counters as hopes of Zain deal strengthened after Etisalat’s move to arrange finance for the bid. The index however slipped on moderate profit taking and moved in broad range before peaking at 7079.6 points past the mid-session. It sagged again but managed to close the day with modest gains. “The return of mergers & acquisitions deals to the regional market and the large capitalized telecom companies leading the crowd in this regard strengthens the equity markets and brings new pulse to the investors public,” Global Investment House said in a recent note.

Gainer
The top gainer of the day, International Investor Co spiked 9.09 percent to 30 fils while Hits Telecom climbed 8.9 percent to stand next. Ajwan Gulf Real Estate Co slid 30.92 percent, the steepest decliner of the day, while Al Mal topped the volume with 18.1 million shares trading hands. Mirroring the positive mood, the market spread was skewed heavily towards the gainers. 72 stocks advanced while 26 closed lower. Of the 124 counters active on Wednesday, 26 closed flat. 6356 deals worth KD 74.54 million were transacted - a 44.9 percent surge in value over previous session. KSE, with 208 listed companies, is the second largest bourse in the region.
The bourse has been positive so far during the week after breaching the 7000 mark on Monday. It has added 91 points from Sunday’s opening level and has climbed 91 points so far during the month. The bourse had rallied 6.75 percent in the July-September quarter and is trading 2 percent higher year-to date.

The sectors closed mostly in the green. Banking sector rallied 1.2 percent while investment edged 0.2 percent higher. Insurance jumped 2.2 percent while real estate rose 0.3 percent. Industrial slipped 0.8 percent whereas services inched 0.1 percent up. Food outshined other sectors with 2.3 percent rally and non-Kuwaiti added 0.3 percent.
In the banking sector, National Bank of Kuwait held the ground unchanged at KD 1.420 after trading 5.85 million shares. The lender has commenced a 10 percent rights issue on Oct 5 and will run through Oct. 21, 2010. The issue is aimed at supporting bank’s expansion plans and is priced at 500 fils per share including premium. Commercial Bank slipped 10 fils to close at KD 0.900 whereas Al Ahli Bank was not traded during the session. Gulf Bank was flat at KD 0.540 with a volume turnover of 5.6 million shares. The lender has won the Central Bank of Kuwait approval for the request to buy back or sell a maximum 10% of its issued shares for a six-month period from the expiry of current approval on October 14, 2010. Kuwait International Bank edged 5 fils higher to settle at KD 0.305.

Added
Burgan Bank added 5 fils to close at KD 0.490 and Kuwait Finance House was steady at KD 1.260 after vacillating in a 20 fils range intra-day. The stock had gained 5.45 percent in September and has added 160 fils so far during the year. Boubyan Bank was up 20 fils at KD 0.660 on back of 4.47 million shares.
Investment major KIPCO rose 5 fils to settle at KD 0.490 with a volume of 4.5 million shares whereas National Investment Co stagnated at KD 0.520 after posting slid gains earlier in the week. International Financial Advisers too was unchanged at KD 0.064.
Bayan Investment Co and Global Investment House were unchanged at KD 0.068 and KD 0.058 respectively and Al Tamdeen Investment Co followed suit. Al Tamdeen has received the approval from the Central Bank of Kuwait (CBK) to repurchase or divest 10% maximum of its issued shares for a six-month period.

In the bourse related news, Kuwait stock exchange has suspended the following companies from trading in the bourse for failing to submit the financial statements in the stipulated time: Safat Global Holding, Investment Dar Company, International Leasing and Investment Co, Villa Moda Life Stylle, Securities House Company, International Investment Group, Network Holding Co, Al-Ahleia Holding Company, Gulfinvest International Co, Aayan Leasing and Investment Company, Equipment Holding Co Pearl of Kwt. Real Est Co, and Al-Abraj Holding Co. The companies which were barred for carrying forward losses exceeding 75% of capital are: Gulfinvest International Co, Equipment Holding Co, Network Holding Co.
Al Madar Finance and Investment Co has incurred loss amounting to KD 3,721,396 and loss per share of 10.46 fils in the second quarter as against loss of KD 3,280,688 and loss per share of 9.22 fils in same period last year. In the first half of the year it posted a loss of KD 6,945,971 while loss per share chalked 19.53 fils.

Al-Enmaa Real Estate Company has posted a profit of KD 99,862 and earnings per share of 0.22 fils in the second quarter as compared to a loss of KD 1,508,451 and loss per share 3.35 fils for the same period last year. In the six-month period ending June 30, the company recorded a profit of KD 596,487 and earnings per share of 1.32 fils.
The Industrial and Financial Inv Co announced the financial results for the second quarter and the six months ending June 30, 2010. In the 2nd quarter loss amounted to KD 2,800,493 while loss per share clocked 6.89 fils against profit of KD 552,852 and earnings per share of 1.36 fils for same period in 2009. In the first half of 2010, the loss totaled KD 2,961,684 and loss per share worked out at 7.28 Fils.