KUWAIT CITY, July 27: Kuwait stocks retreated 4 percent Wednesday, slipping 24 points to close 6,065 points. All sectors closed in red with the realtors suffering the worst setback falling more than 1 percent.
The market sold a total of 52.8 million shares for KD 7.5 million, shedding 29 percent volume and 17 percent value compared to Tuesday. The investment sector was the largest volume mover selling 19 million shares. The market was biased towards selling. All the banks closed flat Wednesday, National Bank of Kuwait at KD 1.100, Gulf Bank of Kuwait at 510 fils and Kuwait Finance House at 900 fils. The banking sector sold a total of 3 million shares, 22 percent less than the previous day and earned KD 2.2 million, gaining 1.9 percent. The banking sector was in a buying mood. Oil fell on Wednesday as a stalemate in the United States over raising the debt ceiling dragged on, with analysts saying the wrangling had already damaged the economy. The uncertainty helped drive gold to an all-time high for the sixth time in two weeks on Wednesday, while stock markets and base metals fell. The investment sector Kuwait Investment Company took out 2 fils to close 106 fils. Commercial Facilities Company fell 5 fils close 340 fils.

In the services sector, Agility gained 5 fils to close 305 fils. Zain and Wataniya closed flat at 990 fils and KD 2.040 in the same order. Servicing sector retreated 0.3 percent pushing 50 percent less volume than Tuesday of 8 million shares worth KD 1.4 million. Value was down 48 percent. Meanwhile, an NBK study showed that the current account surplus of Kuwait rebounded in 2010 as the effects of the financial crisis waned. The current account surplus was KD 10.6 billion in 2010, an increase of KD 3.1 billion from 2009, putting it near its 2007 levels. It is also expected to have grown faster than GDP, taking its share of GDP to 29 percent, up from 24 percent in 2009. Generally, individual components of the current account exhibited a trend of slight improvement - either a decrease in deficits or increase in surpluses. Nevertheless, certain components are worth a closer look. Revenue from oil exports, the study further said, increased by a third, reaching KD 17.7 billion, thanks to higher oil prices and to strong global demand. As for non-oil exports, they exhibited a smaller increase and therefore made up a smaller share of all goods exported in 2010. Non-oil exports made up 7.9 percent of all exported goods in 2010, down 1.9 percentage points from 2009.

Kuwait Petroleum Corporation announced a hike of $1.89 in the price of the Kuwaiti oil barrel to settle at $105.15 on transactions of Monday compared to $103.26 recorded last Wednesday.
Meanwhile President of CFA Kuwait said, Islamic banks in the Middle East are also not immune from problems facing the global banking sector. For instance, they are exposed to speculative financing of real estate. It is worthwhile reviewing some of the issues that follow from our previous article on Islamic finance in the context of alternative financial systems. The ongoing debate suggests that there are two major expectations from any alternative financial system. First, it should be free of bailouts of private institutions from public money, and second, it should focus on serving the real economy.
Independent Petroleum Group Co announced its results for the First Half ended on July 30. The net profit was KD 870,000, and earnings per share was 6.02 fils. For the same period last year, the company made a net profit of KD 2,214,000, with earnings per share of 15.32 fils.
Dulaqan Real Estate Company also announced its results for the first half of 2011. The company’s net profit was KD 110,198. Earnings per share was 2.75 fils. Compared to last year, the net profit slacked. The net profit for the same period in 2010 was KD 128,202, and earnings per share was 3.20 fils.

A weekly analysis showed that Real Estate Trade Centers Company moved 11.67 percent up, followed by Tameer Real Estate Investment Company at 9 percent. Al Safat Real Estate Company was up 6.2 percent. Jazeera Airways Company gained 4.8 percent, while Al Ahleia Holding Company was up 4.1 percent.
Top losers last week were Sanam Real Estate Company that slid 17.7 percent, followed by Dar Al Thuraya Real Estate Company that was down 15.6 percent. Burgan Well Drilling Company fell 15.2 percent, while MENA Real Estate Company fell 14.7 percent. United Projects Group was down 13.8 percent.
On Wednesday, Dar Al Thuraya Real Estate Company was the winner at 7.4 percent, followed by Ekttitab Holding Company at 6.2 percent, Kuwait Educational Services Company at 5.2 percent. Al Ahliea Holding Company was up 4.1 percent and Deera Holding Company gained 3.7 percent.
On the downside, Housing Finance Company was the worst loser at 14.2 percent. Sokouk Holding Company trailed at 8.8 percent, while Union Real Estate Company fell 7.4 percent. At 5.8 percent International Finance Company and Al Safwa Group Company were tied.