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Kuwait mid and small cap stocks push indices down GLOBAL DAILY MARKET REPORT KUWAIT: Kuwait Stock Exchange (KSE) indices closed lower yesterday following a weak performance from mid and small cap stocks. Zain balanced the weighted index and closed in green territory in the last four seconds before the market closed. Investors and portfolios are forcing the stocks to close high after traded in lower prices during the session. IFA Hotels & Resorts Company witnessed five deals in the last minute. The scrip was jumping 5fils in each deal and closed up by 2.13 percent by end of the session. Global General Index (GGI) ended the day down by 0.11 percent, at 177.86 point. Market capitalization was down for the day reaching KD29.09bn. On the other hand, KSE Price Index closed at 5,790.7 point, shedding 10.7 points (0.18 percent) to its previous close. Market breadth During the session, 103 companies were traded. Market breadth was skewed towards decliners as 42 equities retreated versus 24 that advanced. Yesterday’s losses were accompanied by growing trading activity. Total volume traded was up by 8.71 percent with 118.15mn shares changing hands at a total value of KD21.19mn (6.04 percent higher compared to Monday’s session). Real estate sector was the volume leader. The sector accounted for 34.43 percent of total shares exchanged. Trading was intense on the counter of Abyaar Real Estate Development Company with investors exchanging 22.56mn shares, with a total value of KD0.66mn. Closing price of the stock was KD0.0295. (up 1.72 percent). The services sector was the value leader, having 32.97 percent of total traded value. In terms of top gainers, Al-Themar International Holding Company was the top gainer for the day, adding 5.56 percent to its share value and closing at KD0.095. On the other hand, Warba Insurance Company shed 7.46 percent and closed at KD0.124 making it the biggest decliner in the market. Sectors Real Estate stocks shouldered the losses
WEDNESDAY, DECEMBER 28, 2011
business
with a 1.35 percent dip. Selling was heavy on the counter of Mabanee Company which shed 3.41 percent to close at KD0.850. National Real Estate Company also retreated by 4.41 percent to close at KD0.130. Al Massaleh Real Estate Company was the biggest loser in the real estate sector, shedding 5.81 percent to close at KD0.081. Food stocks declined by 1.17 percent as measured by Global Food Index. Danah Al Safat Foodstuff Company lost 2.06 percent as it shed 2.06 percent of its price to close at KD0.095. Heavyweight, Kuwait Foodstuff Company (Americana) closed down by 1.35 percent at KD1.460. Global Industrial index followed, declining by 1.11 percent. Kuwait Cement Company and Salbookh Trading Company decreased by 2.17 percent and 2.00 percent, respectively. Services and non Kuwaiti indices were the sole advancers yesterday, adding 0.38 percent and 0.31 percent, respectively. Zain closed up by 1.15 percent at KD0.880, while
Egypt Kuwait Holding Company closed up by 2.00 percent at KD0.255. Corporate news Kuwait Finance House (KFH) clarified on a media report regarding acquiring assets outside Kuwait and announced that it has acquired two properties for investment purposes. National Cleaning Company announced that its 90 percent owned subsidiary has been awarded the lowest price in a three year tender offer to provide cleaning services for Kuwait Ports Authority’s complex building. On December 27, 2011 the company announced that its 90 percent owned subsidiary has signed the three year, KD0.290mn tender offer. Kuwait Petroleum International (Q8) announced that one of its affiliate companies has inked a contract with Lufthansa to provide the German fleet at the Verona airport, northern Italy, with 8mn liters of jet fuel per year.
Brent above $108 on supply worries, US data supports SINGAPORE: Brent crude rose slightly to trade above $108 yesterday, supported by supply disruptions in Syria and Iranian naval exercises in a key shipping lane, while improved US home sales data and year-end shortcovering also supported prices. Brent, which rose to an intraday high of $108.30 per barrel, was trading up 14 cents at $108.10 at 0645 GMT. US crude eased 20 cents to $99.48 a barrel. “Syria could be a support factor for the time being, but we will not see a big climb or rocket high prices because of that,” Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo, said. “So far, supply disruptions have not been a big issue because of some easing of demand in Europe. This has offset the disruption of supplies.” Syrian Oil Minister Sufian Alao said on Saturday that his country’s oil production had fallen by about 30 to 35 percent as a result of sanctions imposed on Syria over its nine-month crackdown on anti-government protests. Iranian naval exercises also added to supply worries. Iran on Saturday began 10 days of naval exercises in the Strait of Hormuz, raising concern about a possible closure of the world’s most strategic oil transit channel in the event of any outbreak of military conflict between Tehran and the West. But Hasegawa said the impact of the naval exercises on prices was limited for now as there was plenty of supply from OPEC countries. Kuwait produced more than 3 million barrels of oil in December and expects that rate to continue if demand exists, its oil minister Mohammad al-Busairi said on Sunday after a meeting of Gulf Arab oil ministers in Abu Dhabi. UK consultancy Oil Movements also said last week that Seaborne oil exports from OPEC, excluding Angola
and Ecuador, will rise by 400,000 barrels per day (bpd) in the four weeks to Jan 7, to reach 23.63 million bpd on average. The higher supplies come at a time when investors are worried about demand from Europe taking a hit given the region’s crippling debt crisis. Leaders of Germany’s major business and industry groups said they expect the country’s economy to lose momentum although there will be no recession in 2012. Industrial output at top energy consumer China is also expected to slow slightly, growing 11 percent in 2012, easing from an estimated 13.9 percent in 2011, China’s industry minister said on Monday. China’s foreign debt rose to $697.2 billion at the end of September from the $642.5 billion three months earlier, China’s State Administration of Foreign Exchange (SAFE) said yesterday. But few doubt that China, which sits on the world’s biggest pile of foreign exchange reserves worth $3.2 trillion, would fail to honor its foreign obligations. But amid the weak outlook for Europe, positive data came from the United States where new single-family home sales rose to a sevenmonth high in November and the months’ supply of houses on the market was the lowest in 5-1/2 years, adding to signs of a budding recovery in the sector. “I am not expecting big movements in the crude oil market this week, but there will be some upside due to shortcoverings. Brent is likely to be in the range of $105-$113 this week,” Hasegawa said. Tetsu Emori, a fund manager with Astramax Co. in Tokyo, also said that trade could be limited on Tuesday because of the year-end holidays. “It’s after Christmas and a lot of people are not back in the market,” he said, adding that investors will seek cues from US markets which will reopen after a long weekend. — Reuters