Kuwait stocks nosedive amid regional weakness

KUWAIT CITY, Oct 16: Kuwait stocks nosedived Thursday to end the week on sour note. The main index plunged 131.22 pts in broad decline to 7140.34 points led by banks and financial equities. The slump was triggered by panic — sell offs in major regional markets amid fears that continuing weakness in crude prices could impact the oil-dependent Gulf economies.

The KSX 15 gauge dropped 3.2 points to 1195.8 pts taking the month’s losses to 8 points whereas weighted index slipped 3.83 pts. The volume turnover meanwhile edged higher adding to rise in the last five days. 269.91 million shares changed hands — a 8.26 percent increase from the day before.

All sectors barring two closed in the red zone. Healthcare outled the rest with 0.54 percent gain whereas technology dived over 4 percent, the biggest loser of the day. In terms of volume, financial services accounted for the highest market share of 42.35 pct while real estate and banks followed with 24.76 percent and 11.49 pct respectively.

Among sharp losers, Gulf Insurance slid 40 fils to KD 0.550 and Al Ahleia Insurance Co dipped 25 fils. Gulf Cable shed 20 fils erasing the modest rise in the previous session while Automated Systems Co and Kuwait Foundry Co were down 25 fils each.

Commercial Bank of Kuwait dropped 20 fils and Boubyan Bank gave up 10 fils to end at KD 0.510. The bank has logged a nine-months net profit of KD 20.26 million earnings per share 10.32 fils as against KD 9.32 million net profit and earnings per share of 4.75 fils in the same period last year.

Stagnate

Sector bellwether Zain continued to stagnate at KD 0.650 after trading 4.6 million shares while Wataniya Telecom shed 20 fils extending an identical fall in the previous session. Agility eased 10 fils to KD 0.870 and the counter saw 4.6 million shares change hands.

The market opened weak and headed lower in early trade. The index moved sideways briefly before resuming the decline as investors exited positions across the sectors. It hit the day’s lowest level of 7388.64 points in the final minutes before slightly trimming the losses at close.

Top gainer of the day, IFA Hotels and Resorts rose 4.95 percent to KD 0.212 while Educational Holding Co was up 3.7 pct to stand next. Metals and Recycling Co tumbled 8.62 percent, the steepest decliner of the day and Gulf Finance House topped the volume with over 28 million shares.

Mirroring the day’s tumble, the market spread was heavily skewed towards the losers. 15 stocks advanced whereas a whopping 109 stocks closed lower. Of the 148 counters active on Thursday, 24 closed flat. 5935 deals worth KD 38.9 million were transacted — a 43.13 percent decline in value from the previous session.

Kuwait Investment Co dropped 10 fils to KD 0.510 and Mal Investment Co clipped 2 fils after trading 9.3 million shares. The company has won the approval of Capital Markets Authority for a 27.25 percent increase in authorized capital from KD 52.828 million to KD 67.224 million at a nominal value of 100 fils per share excluding premium.

National Industries Group fell 4 fils to KD 0.2290 extending an identical loss on Wednesday and saw a volume of 3.34 million while Kuwait Cement Co was down 15 fils at KD 0.440. Boubyan Petrochemical Co slid 30 fils while Qurain Petrochemical Industries Co gave up 10 fils.

Safwan Trading and Contracting Co fell 10 fils to KD 0.440 and Kuwait Gulf Links Co inched 1 fils lower. The company has clocked a net loss of KD 1.160 million and loss per share of 4.39 fils in the first six-months of the year as against net loss of KD 866,919 and loss per share of 3.28 fils in the first half of 2013.

Kuwait Portland Cement was unchanged at KD 1.380 and RISCO followed suit to close at KD 0.355. Combined Group Contracting Co and NAPESCO paused at KD 0.840 and KD 0.570 respectively.

Upside

On the upside, Mabanee Co gained 20 fils while Independent Petroleum Group climbed 15 fils. Kuwait National Cinema Co soared 30 fils and United Projects Group was up 10 fils at KD 0.780.

In the banking sector, Ahli United Bank shed 20 fils whereas National Bank of Kuwait bucked the trend with 10 fils gain. The bank has posted a net profit of KD 203,92 million and earnings per share of 43 fils in the nine-month period ending September 30, 2014, up from net profit of KD 198.58 million and earnings per share of 42 fils in the same period last year.

Al Ahli Bank of Kuwait fell 10 fils and Kuwait International Bank was down by same measure. Burgan Bank slipped 10 fils to KD 0.540 whereas Kuwait Finance House held the ground unchanged at KD 0.830 with a volume of 2.74 million.

National Investment Co eased 4 fils whereas KIPCO was flat at KD 0.710 off early lows. Securities House Co fell 5 fils while Bayan Investment Co and Osoul Investment Co gave up 4 fils each. KMEFIC clipped 2 fils and Sokouk Holding Co pulled 4 fils lower.

First Investment Co shed 8 fils after trading 4.2 million shares while Ektitab Holding Co edged 2 fils lower. National Real Estate Co fell 6 fils while Salhia Real Estate Co and Tamdeen Real Estate Co were down 10 fils each.

The bourse has been markedly negative during the week. It closed lower in four of the five sessions and tumbled 237 points week-on-week. It has dived 211 points from start of the month and is trading 1.84 pct lower year-to-date. KSE, with 213 listed companies, is the second largest bourse in the region.

In the bourse related news, Kuwait Business Town Real Estate has recorded a net profit of KD 823,370 and earnings per share 1.60 fils in the January-September period rebounding from KD 1.918 million net loss and loss per share of 3.72 fils in the first nine months of the 2013.

Kuwait Co for Process Plant Construction and Contracting has won the approval of Capital Markets Authority for the company’s request to buy back or sell up to 10 percent of own shares over 6 months.

Al Mal Investment has recorded a first half net loss of KD 7.03 million and loss per share of 13.31 fills in the six-month period ending June 31, 2014 as against KD 39,357 net profit and earnings per share of 0.07 fils in the first half of 2013.

United Foodstuff Industries Group has logged a net profit of KD 832,780 and earnings per share of 25.17 fils in the first half of 2014, up sharply from KD 256,570 net profit and earnings per share of 7.75 fils in the first half of 2014.

First Takaful Insurance has incurred a net loss of KD 5.83 million and loss per share of 58.35 fils in the January-June period as against net profit of KD 104,068 and earnings per share of 1.04 fils in the same period last year.