Kuwait plan lifts banks, prices seen stretched

26/01/2011 00:00 AST

The price index of Kuwait Stock Exchange (KSE) ended trading on Tuesday with an increase of 12.8 points to 6,972.7 points, while the weighted index dropped 2.34 points, reaching 492.06 points.

Trades came to 4,321 transactions, worth about 43.5 million Kuwaiti dinars, and volume was at 395.3 million shares upon closing.

Six out of the eight sector indices were green.

The biggest gainer was the banking sector, which was up 57.3 points, the biggest loser was the food sector with a drop of 47.6 points.

The leading high shares was that of Safwan Trading and Contracting Company, while the biggest loss was suffered by Flex Resorts and Real Estate Company.

Five most traded shares were those of National Ranges Company (NRC), Investors Holding Group K.S.C.C , Abyaar Real Estate Development Company, Al-Safwa Group Company and Al-Safat Investment Company.

The price index of KSE opened with a drop of 15.5 points to 6,944.4 points by 9:15 a.m. Tuesday, while the weighted index was also down 2.89 points to 491.51 points.

At least 27,945,000 shares at a cost of KD 2,733,480 were exchanged through 352 deals. The price index of KSE was red at 10:50 a.m. Tuesday, a drop of 8.9 points to 6,951 points. Meanwhile, the weighted index was also down 2.73 points and reached 491.67 points.

Volume came to 156 million shares by that time, traded in 1,888 transactions worth about KD 22.7 million.

In other news, Kuwait banks hit a 27-month high on Tuesday as traders bought in ahead of quarterly earnings, but valuations may have run ahead of fundamentals.

Banks stocks have surged since Kuwait last year unveiled a 104 billion US dollars infrastructure spending plan - to be part-financed by banks - but few details have since emerged.

"Given the sheer size of the plan, I would wait to see concrete signs that it has passed through all the necessary hurdles first," said Ibrahim Masood, Senior Investment Officer at Mashreq Bank.

"Fundamentals need to catch up with where Kuwait stocks are trading, especially when you look at some of the structural issues Kuwait faces. Kuwait doesn't look very exciting from a short-term perspective."

Ahli United Bank (AUB) rose 4.6 percent and Burgan Bank added 1.8 percent, helping the bank index climbs 0.5 percent to its highest finish since Oct. 15, 2008.

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Al Watan