Earnings reports buoy KSE stocks

13/03/2011 00:00 AST

The beginning of the earnings season and cash distributions starting to pour into the market coupled with the announcement of 40 percent cash dividend by the biggest Kuwaiti bank, National Bank of Kuwait, the robust recovery of the Saudi market and the encouraging economic indicators revealed in the GCC, are factors that caused a rebound in the Kuwaiti stock market.

Global General weighted index, formed a double bottom pattern during the last couple of weeks at around 195 points before rebounding back up, reaching 205.03 points at the end of the last trading session, gaining 3.71 percent during the week. The recent bullish pattern suggest an additional increase in the index up till 209.6 point in the coming few sessions, while crossing it over will lead to the next resistance level at around 211 point on the short to medium-term.

The bullish trend tightened the index's year-to-date losses to 8.28 percent. On the other hand, Kuwait Stock Exchange (KSE) price index followed the trend as it was also up by 2.26 percent (138.9 points) during the week and closed at 6,286.6 points. Investors wealth appreciated by KD1.18bn during the week as total market capitalization rose to KD33.32bn.

Market breadth reversed to positive this time with 90 stocks managing to end the week advancing against 38 stocks retreating out of 148 shares traded. Trading activity started at low base but gradually increase throughout the week. Total trading volume reached 800.77mn shares changing hands, at a total traded value of KD146.85mn.

Trading volume was the highest on the Services Sector, accounted for 29.18 percent (233.67mn shares traded) of the total market volume. National Ranges Company was the highest volume traded stock, with 94.08mn shares changing hands. The scrip topped the gainers list as well with a 32.43 percent increase in its price.

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Kuwait Times