Stocks swing in volatile trading

Kuwait Stock Exchange (KSE) witnessed volatile trading yesterday, but the last minute transactions helped the index to rise. Global General Index (GGI) rose by 0.12 percent to reach 224.72 points. On the other hand, the KSE Price Index went up adding 26.30 points (0.32 percent) to close at 8,308.70 points. Market capitalization rose by KD43.12mn yesterday to reach KD36.44bn.

During the session, market breadth was skewed towards decliners as 62 equities retreated versus 54 that advanced, while 87 stocks were unchanged. Volume and value of shares traded on the exchange increased yesterday, as investors exchanged 768.30mn shares (+24.09 percent), at a total value of KD187.03mn (+26.89 percent).

The Services Sector was the volume leader for the second consecutive day, accounting for 33.82 percent (259.84mn shares) of total volume traded. As all Al-Safat Goup listed companies (Safat Global Holding, Al-Safat Energy Holding and Al Safwa Holding Group) witnessed heavy trading. Its worth mentioning that Al Safat Investment company has appointed UBS AGs London branch as advisor to help in evaluating the company and setting up a plan to restructure its finances and operations and CBK has approved this appointment.

Banking Sector was the value leader for the second consecutive day accounting 48.28 percent of the total value traded with a total value of KD90.30mn. Boubyan Bank aided the sector with a total traded value of KD70.21mn, to be the value leader for the day. These gains were after Commercial Bank of Kuwait announced that it had agreed to sell its shares in Boubyan Bank to the National Bank of Kuwait for KD0.550 per share with at a total value of KD120mn. Aqar Real Estate Investment Company was the top gaine r for the day, adding 9.62 percent to close at KD0.114. On the other side, Al-Muwasat Holding Company was the top loser shedding 28.00 percent, to close at KD0.180.

Sector wise, most of Global Indices ended the day on a positive as five out of eight indices posted daily gains. Global Investment Index was the highest gainer adding 1.59 percent. Kuwait Projects Company gained 5.45 percent pushing the index up yesterday. The scrip closed yesterday at KD0.580. Global Investment House was the highest gainer among the sector adding 8.47 percent. Its worth mentioning that Global Investment Houses AGM approved capital increase by 1.5bn shares with a par value of 100 fils p lus 10 fils premium and maximum issuing expenses of 5 fils.

Global Industrial Sector came in the adding 1.02 percent to its value. MENA Holding Group surged by 6.25 percent to close at KD0.510. On the decliner front, Global Food Index was the biggest decliner for the second consecutive day, shedding 2.81 percent. The index was affected by Kuwait Foodstuff Company (Americana) lost 3.80 percent to close at KD1.520. Livestock Transport and Trading Company declined by 2.63 percent to close at KD0.370. All Global Special Indices ended the day on a negative note except Global High Yield index , which went up by 0.63 percent to compensate for some of Sundays losses incurred by Aref Investment Group, which gained 1.72 percent to close at KD0. 236.

The price of OPEC basket of twelve crudes stood at $70.45 a barrel on Friday, compared with $70.87 the previous day, according to OPEC Secretariat calculations. The board of the Central Bank of Kuwait (CBK) approved the implementation of the amended capital adequacy ratio (Basel II) on local Islamic banks starting from June 30, 2009.