KSE gains as investors digest election outcome Zain adds 10 fils; NBK stagnates

KUWAIT CITY, Dec 3: Kuwait stocks pulled higher Monday after closing almost flat in the previous session.
The index, after getting off to a wobbly start, rose 13.83 points helped by last minute buying in select counters. The trading floor mood was skittish as investors digest the outcome of the elections and its impact on the financial markets and the economy at large. The KSX 15 measure dropped 4.36 points to 1025.56 points and is up over 25.56 points from its baseline whereas weighted index edged 0.47 percent lower. The volume turnover slipped further taking the decline to third consecutive day. 342.43 million shares changed hands – down 13.58 percent from Sunday. KSE has rallied over 3 percent in November despite the political worries ahead of the elections. Majority of the sectors closed in the positive territory. Consumer goods out led the rest with a 0.83 percent uptick and basic materials shed 0.83 percent, the biggest decliner of the day. Volume wise, financial services dominated with market share of 50.10 percent and real estate chalked 31.46 percent .

Kuwait Food Co (Americana) rose 20 fils to KD 1.700 and Mashaer Holding Co followed suit to end at KD 0.270. Gulf Glass Manufacturing Co rose 10 fils to KD 0.650 and Ikarus Petroleum Industries Co added 8 fils to settle at KD 0.650. Kuwait Cable Vision Co took in 2 fils and IFA Hotels and Resorts Co climbed 10 fils. The company has posted KD 4 million loss and earnings per share of 9.37 fils per share in the 9-month period ending September 2012 , a 342% jump in losses from same period in 2011. Bourse heavyweight Zain gained 10 fils on back of 0.97 million shares to close at KD 0.830 after pulling lower in the previous session . Wataniya Telecom was unchanged at KD 2.320 off early lows and Agility followed suit to wind up at KD 0.520. The stock had added 15 fils during whole of November and has rallied 145 fils from start of the year.

Flat
The market opened flat and slipped into a trough in early trading. The index continued to drift lower and hit the day’s lowest level of 5919.31 points almost half way into the session. It clawed back thereafter amid modest upswing in select counters and hovered around the opening mark before ticking higher to close with modest gains. Top gainer of the day, Al Aman climbed 9.8 percent to 56 fils and Mashaer Holding Co rose 8 percent to stand next. Kuwait Financial Investment Co slid 6.85 percent, the steepest decliner of the day, and Mayadeen topped the volume with 28.77 million shares. Mirroring the day’s uptick, the market spread was skewed towards the winners. 52 stocks advanced whereas 38 closed lower. Of the 135 counters active on Monday, 45 closed flat. 6171 deals worth KD 30.18 million were transacted - up 2.73 percent in value from the day before.

“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.”


On the downside, Combined Group Contracting Co dropped 20 fils to KD 1.460 and Kuwait Foundry Co slipped 10 fils to KD 0.300 . ALAFCO eased 5 fils to KD 0.325 and Gulf Franchising Co was down by same measure to wind up at 95 fils. Kuwait Gulf Links inched 1 fils lower. The stock was flat during November and is trading 13 fils lower year-to-date.

National Industries Group fell 2 fils to KD 0.212 and Kuwait Pipes followed suit to end at KD 0.120. Kuwait Cement Co closed flat at KD Gulf Cables stagnated at KD 1.220. The company has earned KD 10.54 million and chalked an EPS of 50 fils in first nine months of 2012. In the banking sector, National Bank of Kuwait stagnated at KD 0.980 after trading 6.65 million shares and Gulf Bank too did not budge from its earlier close of KD 0.430. Al Ahli Bank was flat at KD 0.640. The lender has won approval of Kuwait Central Bank to extend the approval to buy back or sell up to 10% of its issued shares for 6 months ending on June 12, 2013.


Slumped

Commercial Bank of Kuwait slumped 30 fils to KD 0.660 and Kuwait International Bank was steady at KD 0.290 after giving up early gains. Ahli United Bank was not traded during the session. Burgan Bank was flat at KD 0.530. The stock has slipped 10 fils from start of the month and is down 55 fils Boubyan Bank slipped 10 fils and Kuwait Finance House was down by same measure to end at KD 0.810. The lender’s net profit attributable to share holders in third quarter increased 7.2 percent year-on-year to KD 75.9 million and earnings per share chalked 26.64 fils. International Financial Advisers rose 2.5 fils to 39 fils on back of 23.36 million shares and National Investment Co eased 2 fils . KIPCO was flat at KD 0.395 and Securities House took in 2.5 fils. Securities Group edged 2 fils higher.


International Finance Co rose 2 fils and Kuwait Financial Centre ( Markaz) followed suit. KMEFIC slipped 2.5 fils and Noor Financial Investment Company ticked 1 fils up . The company has posted a net profit of KD 3.1 million and during the first nine months of 2012 while earnings per share came in at 9 fils. Al Maal Investment Co was unchanged at 38 fils and KAMCO edged 2 fils lower to KD 0.102. KFIC added 5 fils Bayan Investment Co inched 0.5 fils lower. The company has won the approval of the Capital Market Authority on its request to sell own shares amounting to 34,499,385 over a period of 6 months. The bourse has been mixed during the week and has added 12.2 points in last two sessions. The index rallied over 176 points in November and is trading 2.84 percent higher 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% of capital.


By: John Mathews

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