KUWAIT CITY, July 31: Kuwait’s index opened the week Sunday slipping 0.4 percent, recording a 13-day low. The trading closed at 6,014 points, with the marketing opening up and hitting its lowest point in mid session. A slight recovery towards the end was too weak for a green close. He market shed 5.4 points. Four sectors closed down and the rest moved up, with the services sector posting the best gain of 0.38 percent adding 52 points. Heavy weights tumbled with National Bank of Kuwait down 1.8 percent, Zain shedding 1 percent and Kuwait Finance House slipping 1.1 percent. The US debt ceiling continued to impact the markets in the region, and no one wanted to take the risk into making fresh investments, experts noted.

Weakness in global stocks is expected to keep pressure on the Gulf markets as investors piled into safe haven assets on worries about sovereign debt crises on both sides of the Atlantic and data showing meager growth in the US economy.

According to a report by Muthanna Investment Company released earlier, amid weak global sentiments and uncertain local developments, the Kuwait market is still looking for triggers to take it past the FY 2010 levels.
The report further said that a good first quarter earnings failed to act as that trigger. Market is looking forward to Q2 earnings to give it a boost. Investing in selective fundamentally strong stocks even in these uncertain times will give above average returns, experts noted.
The banking sector declined 0.8 percent, falling 94.2 points. NBK shed 20 fils selling 1.6 million shares for KD 1.7 million at KD 1.080 per share. Gulf Bank of Kuwait traded sideways to stay at 500 fils. Kuwait Finance House lost 10 fils to close 880 fils.
Analyzing trend in the first half of 2011, the banking sector outperformed the market displayed robust first quarter results. KSE Banking Sector Index zoomed up 3.05 percent while the market cap of the sector was up by 1.2 percent. Sector Indices for all other sectors slid as the Non-Kuwaiti sector and the ailing Investment sector were the worst performing with 8.53 percent and 3.82 percent decline respectively.

Meanwhile, Gulf Bank announced a net profit of KD 18.3 million for the first half of 2011, against KD 1.9 million for the first half of the previous year. Earnings per share amounted to 7 fils.
GBK’s profit before provisions amounted to KD 56.5 million for the first half of the year. This compares to KD 87.2 million for the corresponding period of 2010, which, however, included KD 42.4 million in extraordinary items - the sale of some investments and CDS revaluation. Thus, core operating profits reached KD 50.2 million for the first half of 2011, compared to KD 44.8 million for the same period of 2010.
As of the end of June 2011, the Bank’s total assets reached KD 4,702 million, deposits KD 4,042 million whilst total shareholders’ equity measured up to KD 429 million. Ali Al-Rashaid Al-Bader, Gulf Bank’s Chairman, said the bank expects to maintain this trend throughout 2011 by constantly offering a mix of high quality services while increasing customer satisfaction, in the wake of anticipated economic improvement.

Burgan Bank on Saturday announced first half 2011 net profit of KD 25.3 million. For the second quarter in 2011, net profit grew by 14 percent to KD 13.455 million while revenues grew by 10 percent to KD 42.7 million from the first quarter of 2011. While comparing with the same period of 2010, a growth of 17 percent of the normalized revenues was reported. This is the fourth consecutive quarter here Burgan Bank Group reports a growth trend of its results.
The investment sector was down 0.2 percent. IFC climbed 3 percent to close 100 fils, while Markaz shed 2 fils. Global took out 2 fils to close 31 fils. The investment sector’s performance has generally been poor as indicated by Q1 analysis. Twenty one of the 51 companies in the sector declined while only 13 advanced, the remaining were unchanged during the quarter.
With the much hyped Zain-Etisalat business deal reaching a deadlock and uncertainty of its future plans saw Zain’s drop by 6 percent in its market cap despite a cash dividend of 200 fils per share. However, the losses were somewhat nullified by better performance by other stocks in the sector as 28 stocks advanced compared to 25 declining in the quarter.

Mobile Telecommunications Company announced that its Board of Directors will meet on July 31, 2011 to discuss the company’s financial statements for the second quarter ended June 30, 2011.
Mabanee, the biggest real estate company in the market, saw a handsome growth of 27.94 percent, thus limiting the drop in otherwise lackluster sector. 17 companies in the sector declined compared to 16, including Mabanee, advancing.
Kuwait Stock Exchange ended last week in the red zone. The price index ended the week with a decrease amounted to 0.69 percent, while the weighted index declined by 1.16 percent compared to the closings of the week before. Moreover, last week’s average daily turnover decreased by 54.67 percent, compared to the preceding week, whereas trading volume average recorded a retreat of 41.71 percent.

A cautious state continued to prevail on the investors, as they are waiting for the listed companies’ semi-annual financial results, where only 9 percent of the listed companies announced its results; however one month of the announcement period is over. As a result, the trading activities were notably deceased, especially the turnover, as it reached its lowest level since 2003 on Tuesday.
Some of the companies that disclosed their financial results Saturday included Aayan Leasing and Investment Co. which announced its results for the 9 Months ended on 30.09.2010. The company’s net loss was KD 15,374,001. Loss per share was 27.39 fils. The net loss for the same period last year was KD 27,538,312. The loss per share same period last year was 45.16 fils.

United Industries Co announced its results for the first half ended on June 30, 2011. The company’s net profit was KD 941,050. Earnings per share was 1.91 fils. The net Profit for the same period last year was KD 4,794,323, and earnings per share was 19.32 fils.
Bahrain Kuwait Ins. Co. announced its results for the first half of 2011. Its net profit was KD 1,936,176, and earnings per share was 30 fils. The Net Profit for the same period last year was KD 1,774,011, and earnings per share was 28 fils.
Sokouk Holding Company announced the results of its Ordinary Annual General Meeting held on July 28, 2011. The AGM approved retaining earnings for the financial year 2010 Munshaat Real Estate Projects Company also announced the results of its Ordinary Annual General Meeting held on July 28, 2011. The AGM approved retaining earnings for the financial year 2010.