KUWAIT CITY, Oct 20: Kuwait market pulled lower on Wednesday extending the losses to the second straight session. The index slipped 21.1 points amid choppy trade to end below the 7,000 mark at 6,997.70 points. The day’s fall was led by select blue chips and some of the mid-priced stocks in the industrial sector. The sentiments remained weak even as earnings continue to trickle in. The index had climbed above the 7,000 benchmark on Oct 11 driven by the Zain stake sale talks.
The weighted index fell 3.47 points to 472.92 points while the volume eased marginally after contracting in the previous session. A total of 242.2 million shares were traded during the day, down 3.7 percent from the previous session. The trading level had been anemic for most part of third quarter and saw an uptick in the last week of September.

Among the day’s notable decliners, Zain shed 20 fils adding to an identical fall in the day before. It closed at KD 1.380 after trading 4.98 million shares. The telecom service provider has posted a net income of KD 976 million in the nine months to Sept. 30. Agility too was down 20 fils at KD 0.540 after ending lower on Tuesday. The counter saw 1.94 million shares change hands.
Kuwait Finance House slid 40 fils erasing the modest gains in the previous session. It ended at KD 1.180 after posting a volume of 3.4 million shares. Gulf Bank eased 10 fils to KD 0.520. The lender has reported an increase of more than 90 percent in third-quarter net profit. Net income in three months to Sept 30 stood at KD 8.4 million.

Other losers include Gulf Cables which dived 60 fils to close at KD 1.960 and Kuwait Portland Cement eroded 20 fils to settle at KD 1.960. National Industries Group however held the ground unchanged at KD 0.380 after vacillating in a narrow 5 fils range. Kharafi Group owned National Investment Co too was unchanged at KD 0.485 after charting a winning spree earlier in the month.
The market opened weak and slipped below the red in early trade as profit booking extended from the previous session. The index moved sideways in a narrow range for over 2 hours as investors toed caution and refrained from taking up fresh positions. It hit the day’s lowest level of 6981.9 points and saw a marginal rebound in the final minutes to close with moderate losses.

Spiked
The top gainer of the day, First Dubai For Real Estate Development Co spiked 9.8 percent to KD 0.028 while Mazaya Holding Co climbed 5.8 percent to stand next. Al Ahlea Holding Company dived 8.6 percent, the biggest loser of the day, while Abyaar topped the volume with 28.8 million shares changing hands. Reflecting the downtrend, the losers vastly outnumbered the gainers. 24 stocks advanced while 64 closed lower. Of the 121 counters active on Wednesday, 32 closed unchanged. 3699 deals worth KD 43.66 million shares were transacted - a 21 percent surge in value over previous session. KSE, with 208 listed companies, is the second largest bourse in the region.
The sectors closed mostly in the red. Banking sector dropped 1.1 percent, the worst performer of the day, while investment was stagnant. Insurance climbed 0.9 percent, the only gainer during the session while real estate eased 0.5 percent. Industrial sector was down 0.5 percent whereas services inched 0.2 percent lower. Food sector fell 0.1 percent and non-Kuwait eroded 0.4 percent.

The bourse has swayed moderately in both directions so far during the week and has slipped 9 points from Sunday’s opening level. It has eased 3 points so far during the month and is trading 2 percent higher year-to date. The bourse had rallied 6.75 percent in the July-September quarter, the highest quarterly gain so far during the year.
In the banking sector, National Bank of Kuwait bucked the trend to gain 20 fils after posting hefty loss on Tuesday. The lender’s 10 percent rights issue whose subscription started on Oct 5 and will close on Thursday, Oct 21, 2010. The issue is priced at 500 fils per share including premium.
Commercial Bank was unchanged at KD 0.900 after closing lower in the day before whereas Al Ahli Bank lost 10 fils. It closed at KD 0.620. Ahli United Bank dropped 20 fils to settle at KD 0.660. Fitch Rating Agency last month had affirmed Ahli United Bank ‘A-’ rating for Long Term Issuer Default (IDR) while the short term IDR received an ‘F2’ rating. The bank’s individual rating stood at ‘C’ and its support at 1 while the Support Rating Floor remained at ‘A-’. The outlook is stable.

Kuwait International Bank was flat at KD 0.310 with a volume of 5.5 million shares and Burgan Bank too was steady at KD 0.485 after fluctuating in a 5 fils range. The stock had climbed 7.95 percent in September and has gained 145 fils since the start of the year. Boubyan Bank fell 10 fils to KD 0.620. In the investment sector, KIPCO was stagnant at KD 0.485 and International Financial Advisors eased 3 fils to 63 fils. Aref Investment Group inched 1 fils lower whereas Bayan Investment Co was down 4 fils at KD 0.062 adding to the marginal fall on Tuesday.
Global Investment House eased 1 fils to KD 0.054 with a volume of 4.24 million. Global earlier in the year had reached a deal with creditors to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks. Al Safat Investment too fell 1 fils while Tamdeen Investment Co lost 5 fils to settle at KD 0.355.

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.