KSE index treads water after volatile trade Zain sheds 20 fils; NIG stagnates

KUWAIT CITY, Dec 2: Kuwait stocks trod water Sunday as investors turned cautious after the outcome of parliamentary post election. The index inched 1.63 percent lower in volatile trade to close at 5,942.31 points after posting modest gains in the previous session. The blue chips closed mixed even as some of the mid-caps sagged on profit taking. The bourse had gained 3.07 percent during whole of November despite the lingering political uncertainties. The KSX 15 benchmark, which had soared to record high last week, dropped 5.48 points to 1,029.92 pts while weighted index slipped 1.56 points to settle at 422.33 pts. The volume turnover eased slightly extending the retreat to second straight session. 397.50 million shares changed hands — down 3.16 percent from day before. 

The sectors closed narrowly mixed. The basic materials, outpaced the peers with 1.11 percent uptick while oil and gas slipped 0.84 percent , the biggest loser of the day. In terms of volume, financial services dominated with 38.84 percent market share and real estate followed with 31.22 percent. Zain slipped 20 fils after stagnating in the previous session. It closed at KD 0.820 and saw a volume turnover of 2.13 million shares. Wataniya Telecom shed 20 fils to end at KD 2.320. The stock had rallied 100 fils during whole of November. Agility managed to eke a modest 10 fils gain with a volume of 1.23 million shares. Among other notable movers, Gulf Glass Manufacturing Co tumbled 50 fils to KD 0.640 and National Industries Co was down 15 fils at KD 0.285. City Group dropped 25 fils and United Projects Group eased 10 fils. Contracting and Marine Services Co slipped 6 fils to KD 0.170.

United Projects Group was down 10 fils at KD 0.570 with thin trading and Kuwait Food Co (Americana) shed 20 fils to wind up at KD 1.680. The stock had added 60 fils during November and has rallied 200 fils from start of the year.
The market opened positive and headed higher in early trade. The index continued to climb amid positive sentiments and peaked at 6004.06 pts almost half way into the session. It retreated thereafter before trading sideways in the final hour and closed slightly below the red.
Top gainer of the day, Kuwait Bahrain International Exchange rallied 8.33 percent to KD 0.130 and Flex climbed 8.16 per cent to stand next. Gulf Franchising Holding Co slid over 9 percent, the biggest decliner of the day, and Mayadeen topped the volume with 71.84 million shares.
The market spread was evenly poised. 52 stocks advanced and an identical number of stocks closed lower. Of the 144 counters active on Sunday, 40 closed flat. 5717 deals worth KD 29.37 million were transacted — up 8.27 percent in value from the day before.
On the upside, Automated Systems Co climbed 25 fils to KD 0.455 and IFA Hotels and Resorts gained 15 fils. ALAFCO rose 5 fils to KD 0.330 and Jazeera Airways followed suit to end at KD 0.465. The stock had slipped 5 fils during November and is up 10 fils YTD.

“It’s a signal that retail investors have more confidence in the market,” Reuters quoted Fouad Darwish, head of brokerage at Global Investment House.
“Retailers believe the government will now pursue long due infrastructure projects. The market should continue going up, although whenever there’s a rally for a day or two people will try to take profits here and there. Overall sentiment is positive.”  Kuwait Cement Co rose 5 fils to KD 0.445 while Kuwait Pipes was up 4 fils at KD 0.122 . The company has logged net loss of KD 3.21 million and loss per share of 14.25 fils in the January-September period. Kuwait Foundry Co gained 10 fils.
National Industries Group however was unchanged at KD 0.214 after gyrating a tight range and the counter saw 3.46 million shares change hands . Gulf Cables too did not budge from its earlier close of KD 1.220.

In the banking sector, National Bank of Kuwait dropped 10 fils to KD 0.980 after trading 1.2 million shares and Gulf Bank was flat at KD 0.430 off early highs. The lender has posted a 5.6 percent increase in third-quarter net profit to KD 9.62 million compared with KD 9.11 million in the same period last year.
Al Ahli Bank of Kuwait rose 10 fils to KD 0.640 and Ahli United Bank was up by same measure to end at KD 0.640. Kuwait International Bank eased 5 fils and Burgan Bank was down 10 fils at KD 0.530. The stock had gained 30 fils during whole of November while year-to-date it has rallied 55 fils.  Kuwait Finance House was up 10 fils at KD 0.820 recouping the loss in the previous session and Boubyan Bank stagnated at KD 0.650. Commercial Bank was not traded during the session. CBK has won the approval of central bank to extend permission to buy back or sell up to 10 percent of own issued shares over a period of six months ending May 21, 2013.

Kuwait Investment Co fell 2 fils to KD 0.102 while National Investment Co and KIPCO closed flat at KD 0.136 and KD 0.395 respectively. KIPCO has obtained the Capital Market Authority approval to buy-back or sell up to 10 percent of own shares over 6 months.
Securities House Co inched 1 fils up and Al Mal Investment Co closed flat. The company has incurred a net loss of KD 4,443,525 and loss per share of 8.41 fils in the January-September period . Securities Group Co slid 12 fils.
KAMCO eased 2 fils and Bayan Investment Co was unchanged at 36 fils. Sokouk Holding edged 2 fils lower. Al Tamdeen Investment Co flunked 2 fils The company has earned KD 4,475,284 with earnings per share of 15.03 fils in January-September period.

The bourse has been upbeat during last week. It closed higher in 3 of the 5 sessions and gained 65.14 pts week-on-week. The index has rallied 175.38 points from start of the month and is up 2.63 percent year-to-date. KSE, with 213 listed companies, is the second largest bourse in the region.
In the bourse related news, Aayan Leasing and Investment has recorded a nine months net profit KD 17.62 million and earnings per share of 38.26 fils in the January-September period as against net loss of KD 7.22 million and loss per share of 21.90 fils in 9M 2011.
Abyaar Real Estate Development has announced a net loss KD 1.24 million and loss per share of 1.15 in the first nine months of 2012 as against earnings of KD 821,618 and EPS of 0.78 fils in the same period last year.
Kuwait Stock Exchange has suspended shares of the following of companies for failing to submit the financial results in the stipulated time : Al-Safat Investment Co, Kwt Commercial Markets Complex Co. Industrial and Financial Inv. Co, Alimtiaz Investment Group Co, Jeeran Holding Co. Meanwhile Global Investment House Co, Al-Ahleia Holding Company and Al-Safwa Group Co are barred for posting losses exceeding 75 percent of capital.

By: John Mathews

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