KSE retreats 41.27 pts as volume shrinks

15/06/2013 08:17 AST

Kuwait stocks retreated further Thursday to end week on a sour note. The index slid 41.27 pts in wavy trading to close at 7,931.09 points as paced by selling in blue chips. The trading floor mood was downbeat as investors exited positions ahead of the weekend and the fallout of the constitutional court ruling on new electoral law on Sunday too weighed on the sentiments. The KSX 15 benchmark slid 15.27 pts to 1,065.43 points and is down 56 points from start of the year while weighted index eased 5.04 pts to 458.09 pts. The volume turnover tumbled 54.50 percent to 351.43 million — a multi-month low. It held above the 1000 million mark in the second half of May buoyed by speculative trading and partly due to the optimism over government spending hike.

The sectors closed mostly in the negative territory. Insurance outpaced the rest with 0.55 percent gain whereas technology dived 1.73 percent, the biggest loser of the day. Volume wise, real estate dominated with 37.79 percent market share while financial services and basic materials followed with 28.81 percent and 18 percent contributions respectively. Boubyan Petrochemical slumped 60 fils to KD 0.640 and City Group too slid 50 fils. United Projects Co shed 40 fils and Independent Group Co was down 10 fils at KD 0.350. Automated Systems Co pulled 20 fils lower erasing the gains on Wednesday.

ALAFCO slipped 5 fils to KD 0.305 and Jazeera Airways was down by same measure to end at KD 0.490 and the stock has rallied 170 fils from start of the year. United Industries Co fell 4 fils and Kuwait Foundry Co was down 10 fils at KD 0.395.

Dropped
Among the heavyweights, Zain dropped 20 fils to KD 0.680 after trading 1.86 million shares whereas Wataniya Telecom held the ground unchanged at KD 2.200. Agility erased 10 fils to settle at KD 0.730 and the stock has shed 40 fils from start of the month.

The market opened weak and drifted lower in early trading. The index slipped to its lowest level of 7896.87 pts and clawed back some of the losses almost half way into the session. It peaked at 7,973.2 points and pulled lower again before paring some of the losses at close. Top gainer of the day, First Takaful Insurance Co spiked 9.09 percent to 29 fils and KCPC rallied 8.33 percent to stand next. City Group skidded 11.49 percent, the steepest decliner of the day while Investors Holding Co topped the volume with 61.49 million shares.

Mirroring the day’s decline, the market spread was skewed towards the losers. 31 stocks advanced whereas 68 closed lower. Of the 142 counters active on Thursday, 43 closed flat. 7,551 deals worth KD 31.94 million were transacted — a 48.51 percent slide in value from the day before.

“We will continue to see market volatility; it’s time for summer holidays, which change market dynamics,” Reuters quoted Jasem al-Zeraei, head of institutional sales at NBK Capital. “If the ruling comes in favour of the government, it might give a little push to the market. If not, the market will be hit.”

National Industries Group, the Kharafi Group flagship company, was flat at KD 0.255 and Kuwait Cement Co followed suit. NIG has earned KD 4.73 million and logged earnings per share of 4 fils in the quarter ending March 2013, down sharply from KD 9.42 million and earnings per share of 7 fils in the year ago period.

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Arab Times