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Kuwait bourse rebounds 77.82 pts; volume soars Americana spikes 100 fils; Wataniya Telecom slumps

KUWAIT CITY, July 2: Kuwait stocks rebounded Wednesday, stemming the three-day decline. The benchmark rallied 77.82 pts to 7,026.29 pts in a broad rally led by banks and other blue chips. The sentiment was markedly positive helped by a slew of upbeat news. The market was driven by   reports that a   group of investors including private equity firms KKR & Co LP and TPG Capital are eying   majority stake in Kuwait Food Co (Americana). Meanwhile, the   banks got a boost after   Moody’s said in its outlook for Kuwait’s banking system that the sector remains stable and that it expected local banks’ profitability to recover.

The KSX 15 gauge   climbed a whopping 25.7 points to 1,171.19 pts   taking the year’s gains to almost 120 points while weighted index rose 7.56 pts. The volume turnover meanwhile surged after slipping below the 100 million mark on Tuesday for the second time during the week. 138.57 million shares changed hands — a  74.69 pct  jump in value from the day before.
The sectors closed mostly in the green zone.  Consumer goods outshone the rest with 3.10 pct gain whereas technology shed 1 percent, the biggest loser of the day. In terms of volume, financial services continued to account for the highest market share of 64.06 pct while banks and insurance where far behind with 13.15 pct and 11.43 percent contributions respectively.
Among  prime movers, National Bank of  Kuwait  rallied 20 fils on back  of  2.95 million shares  to  close at KD 0.980 and  Gulf Bank was up 10 fils at KD 0.345   trimming the year’s  losses to  30 fils. Kuwait Finance House rose 10 fils   with a volume of 2.52 million shares and Commercial Bank of Kuwait followed suit.
Kuwait Food Co (Americana) vaulted 100 fils extending an identical gain in the previous session following stake sale rumours. “This company is part of a huge group — the sale of one for a good price will translate into profits for all the others,” Reuters quoted Fouad Abdulrahman Alhadlaq, deputy general manager at Al Dar Asset Management in Kuwait.
Bourse   heavyweight Zain rallied 30 fils to KD 0.660 and the counter saw over 2 million shares changed hands whereas Wataniya Telecom slumped 60 fils to KD 1.680. Agility climbed 30 fils to KD 0.810 recouping the   loss in the day before.  The market opened   slightly weak and slipped to the day’s lowest level of 6,940.07 pts in early trade. The  index  firmed up thereafter and  gained  momentum amid  renewed  buying  across the sectors and  hit the day’s highest mark of   7,026.83 pts  at close.
Top gainer of the day, Noor Financial Investment Co spiked 9.26 pct to 118 fils while PAPCO climbed over 9 percent to stand next. Hayat Communications Co slid 6.1 pct, the steepest decliner of the day, and Gulf Finance House continued to top the volume with over 32 million shares.
Mirroring the day’s upswing, the market spread was heavily skewed towards   the winners.  79 stocks advanced whereas 18 closed lower. Of the 132 counters active on Wednesday, 35 closed flat.  3,051 deals worth KD 17.36 million were transacted — over 108.81 pct jump in value from the day before.
Gulf Cable rose 10 fils to KD 0.770 while National Industries Group ticked 2 fils higher to KD 0.222.  The company has posted a first quarter net profit of KD 5.044 million and earnings per share of  4 fils  as against  KD 4.732 million and earnings per share of   3.7 fils in the same period last year. RISCO gained 10 fils and Boubyan Petrochemicals followed suit to end at KD 0.760. NICBM and Equipment Holding added 4 fils each while Ikarus Petroleum Industries closed 8 fils higher at KD 0.174. ACICO Industries was up 5 fils at KD 0.330 and Independent Petroleum Group followed suit.
Jazeera Airways and ALAFCO closed flat at KD 0.405 and KD 0.255 respectively whereas KGL Logistics ticked 2 fils higher. Kuwait Foundry Company paused at KD 0.320.   The company   has won the approval of Capital Markets Authority’s to buy back or sell up to a maximum of 10% of its shares for 6 months.

In the banking sector, Ahli United Bank rose 10 fils to KD 0.640 and Kuwait International Bank was up 5 fils at KD 0.295. The bank has chalked a net profit of KD 5.037 million and earnings per share of   5.39 fils in the first quarter of 2014 as compared to   KD 4.24 million profit and earnings per share of 4.55 fils in the same period last year.
Burgan Bank gained 10 fils on back of 1.16 million shares and Boubyan Bank was up by same measure to end at KD 0.510. Al Ahli Bank gave up slight early gains to end unchanged at KD 0.420.
International Financial Advisors and KIPCO were flat at 52 fils and 700 fils respectively whereas National Investment Co was up 6 fils at KD 0.150.  Securities House Co and Bayan Investment rose 3 fils each while First Investment Co added 5 fils.
KFIC climbed 5 fils to 75 fils   and Sokouk Holding Co took in 2 fils, where as KAMCO was steady at  75 fils and Al Tamdeen Investment Co  too did not budge from  its earlier close of KD 0.345. National Real Estate Co climbed 4 fils to KD 0.144 whereas Mabanee Co closed flat.

The bourse   has been mixed so far during the week and has dropped 45   pts in last three sessions.  The market had plunged 320   points    during whole of June   and is trading 6.93 pct lower year-to-date.  KSE, with 213 listed companies, is the second largest bourse in the region.
In the bourse related news, United Foodstuff Industries Group  has logged  a  first quarter net profit of  KD 435,073  and  earnings per share of   13.15 fils, down from  KD 140,533  and earnings per share of   4.25  fils in  January-March period of 2013.
Kuwait Pipes Industries and Oil Services   has  chalked  a net loss of   KD 18.05 million  and loss per share of   80.14 fils in the year ended  Dec 31, 2013,  widening from   KD 6.93 million loss and  loss per share of 30.77 fils in the  same period last year.

Al Dar National Real Estate  has incurred  a  net loss of  KD 924,421  and loss per share of   2.25  fils in the quarter ending  March 31, 2014 as  against  net profit of  KD 12,566  and  earnings per share of   0.03 fils in the same period last year. Union Real Estate Company has posted a net profit of   KD 305,694 and   earnings per share of 1.64 fils in the quarter ending March 31, 2014, slightly down from KD 325,634 profit and earnings per share of 1.75 fils in the same period last year. Amwal International Investment has posted a net profit of KD 189,561 and earnings per share of 2.66 fils in the first quarter of   2014, up from KD 42,848 profit and earnings per share of   0.237 fils in the same period last year.

By John Mathews
Arab Times Staff

By: John Mathews

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