KSE price index climbs 23.83 pts; volume swells

05/02/2014 10:16 AST

Kuwait stocks bounced on Tuesday as it continues to seesaw amid mixed sentiment. The price index, after soggy start, climbed 23.83 points to end at 7,810.55 pts. The day’s advance was led by Wataniya Telecom and some of the banking shares even as the mid and low caps closed mixed.

The KSX 15 gauge edged 0.37 pts lower to 1,080.22 points shrinking the year’s gains to 28 pts while the weighted index ticked 1.59 pts higher to 462.71 points. The volume turnover meanwhile rebounded past the 400 million mark for the first time during the month. 406.27 million shares changed hands — a 23.88 pct rise from the day before.

The sectors closed mostly in the green. Telecommunication outshone the peers with 1.61 pct gain whereas oil and gas shed 0.72 percent, the worst performer of the day. In terms of volume, financial services accounted for the highest market share of 33.41 pct while real estate and industrials followed with 29.31 pct and 22.93 percent respectively.

Among the prime movers, Kout Food Group vaulted 60 fils to KD 0.790 while ACICO Industries Co added 15 fils with thin trading. Kuwait Food Co (Americana) climbed 20 fils to KD 2.520 and Kuwait Portland Cement Co followed suit to end at KD 1.340.

Gained

Yiaco Medical Co gained 15 fils and Zima Holding Co was up 10 fils at KD 0.156. Boubyan Petrochemical and Hilal Cement rose 10 fils each while Future Communications Co Global was up 6 fils at KD 1.000.

Telecom major, Zain slipped 10 fils to KD 0.670 after clocking 1.51 million shares and Wataniya Telecom surged 100 fils to KD 1.940. Zain has earned KD 216.44 million and chalked an earnings per share of 56 fils in 2013 and the Board of Directors has recommended a cash dividend of 50 percent. Agility fell 10 fils to KD 0.670 and the counter saw over 1 million shares change hands.

The market opened weak and slipped into a trough in early trading. The index hit the day’s lowest level of 7,723.98 pts and drifted higher amid buying in select counters. It picked up momentum in the second half to peak at 7,811.75 pts and closed with modest gains.

Top gainer of the day, Kout Food Group Co leapt 8.22 percent to KD 0.790 and Zimah climbed 6.85 percent to stand next. KMEFIC tumbled 7.14 percent, the steepest decliner of the day and Gulf Finance House topped the volume with 65.65 million shares. Reflecting the day’s upswing, the market spread was skewed towards the winners. 53 stocks advanced whereas 36 closed lower. Of 144 counters active on Tuesday, 55 closed flat. 6,754 deals worth KD 40.65 million were transacted — a 21.3 percent increase in value from the day before.

The investors remain wary of the market direction as the state’s implementation of the big ticket infrastructure projects failed to meet the expectations.

“We expected the market sentiment to change in light of expectations of better earnings for the financial sector, which is the biggest sector, but investors are still not confident,” Reuters quoted Fouad Darwish, head of brokerage at Global Investment House earlier last month. Burgan Well Drilling Co took in 2 fils and City Group added 5 fils to close at KD 0.445. The company has logged a net profit of KD 5.46 million and chalked an earnings per share of 48 fils in the year ending Dec 31, 2013, up from KD 3.57 million profit and earnings per share of 32 fils in the year before. The Board of Directors have recommended cash dividend of 35 percent.

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Arab Times