KSE remains bearish

02/03/2011 00:00 AST

Bears continued to control Kuwait Stock Exchange (KSE) yesterday after a holiday session, sending the Global General Index to its lowest level since September 01, 2010. It seems that the KSE is brought under pressure from the volatility in the Saudi market and political tension in the Middle East. Tadawul All Share Index was seen at its lowest level since July 13, 2009 by the end of the day.

Moreover, bad news continued after National Investment Company (NIC) said that, due to the expiration of the deadline given to the Emirates Telecommunications Corporation (Etisalat), for the completion of its due diligence of Zain, which was set by the end of February, NIC declared an end to their commitment towards Etisalat for the sale of a 46 percent stake of Zain.

Global General Index (GGI) closed 6.51 points up (3.11 percent), at 202.98 point. The market capitalization decreased reaching KD33.01bn. On the other hand, Kuwait Stock Exchange Price Index closed in the red zone, shedding 159.70 points (2.46 percent) to its value and closed at 6,321.4 point.

Market Breadth

During the session, 112 companies were traded. Market breadth was skewed towards decliners as 101 equities retreated versus 4 that advanced.

Trading activity was much higher as investors were seen dumping large capitalization stocks. Volume was up by 45.7 percent to 116.98mn shares changing hands with a total value amounting to KD33.67mn (an increase of 144.73 percent compared to the previous session).

The Services Sector was the volume leader yesterday, accounting for 30.83 percent of total shares and the Banking Sector was the value leader, with 49.80 percent of total traded value. Company-wise, Kuwait International Bank was the most actively traded stock during the day, with 10.22mn shares exchanged at a total value of KD2.92mn. The scrip closed down by 6.45 percent at KD0.290.

In terms of top gainers, Kuwait & Gulf Link Transport Co was the biggest gainer for the day, adding 4.62 percent and closed at KD0.136. On the other hand, National Slaughter Houses Company came in as the biggest decliner, dropping by 16.48 percent and closed at KD0.152.

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Kuwait Times