KUWAIT CITY, Feb 6, (KUNA): A number of companies enlisted by Boursa Kuwait have abstained from publicizing their financial statements to benefit from the annual grace period ending on March 31 and await accomplishing such task by subsidiary and sisterly firms. Suleiman Al-Wugayyan, board member in Sorooh Investment Company, attributed the issue, in remarks to KUNA, to other causes such as companies’ engagement in collecting data from the subsidiaries and lack of enough numbers of staff at audit bureaus. Companies’ failing to report their financial status on time is not a very serious situation to the extent of describing it phenomenal; regardless of the harm incurred by the defaulting companies namely negative impact on their stocks and shareholders’ investment opportunities’ waste in the event they have been suspended, Al-Wugayyan says.
Mohammad Al-Naqi of Kuwait Industries Co. attributed the default to other conditions where a company needs to conduct a time consuming process to check data and figures with its stakes abroad.
The delay may be attributed in some cases to certain defect or irregularity in the defaulting company itself, thus the general assembly, particularly if the failure recurs, should to bring the board into account and seek to pin point causes that delay disclosures of profits and losses. He called on relevant supervisory authorities to play a role to contain “this phenomenon” by compelling defaulters pay fines. As to today’s session at the Kuwaiti bourse, main indices fluctuated up and down since opening, amid selective purchase of small chips and profit bagging.
Typically, some traders got preoccupied with news about the listed companies in preparation for making a decision. The market ended Monday’s trading session in the green with the three main indices up. The Price Index rose 14.81 points to stand at 6,701.73 points, the Weighted Index went up by 5.05 points to read 426.88 points and the KSX 15 gained 14.62 points to stand at 980.84 points. Value of trade was at nearly KD 558,939,809 while the share turnover stood at 558,939,809, done through 10,912 deals.