BUSINESS
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Kuwait stocks eke out gains KUWAIT: Kuwait stocks managed to regroup in late trading yesterday to move of the negative territory, as investors got some fresh evidence of economic growth. Kuwait’s budget surplus widened to KD5.59bn ($19.9bn) in the first seven months of the 2010 fiscal year on higher than forecast oil revenues and lower spending, data showed yesterday. Af ter a weak morning, stocks wiped out all the losses accumulated late in the session. Modest strength in the banking and Non-Kuwaiti sectors helped all major indices notch a winning session. Global General Index (GGI) closed 0.45 points up (0.21 percent), at 214.62 point as the Market capitalization increased reaching KD34.71mn. On the other hand, Kuwait Stock Exchange Price Index closed in the green zone adding 2.30 points (0.03 percent) from its value and closed at 6,867.7 point. On a technical overview: KSE price index still needs a firm close above the resistance level at 6,900 point to initiate a medium-term positive outlook. The strong area at 6,820 point - 6,785 point will probably stay supporting the index from failing further down on the short-term period. Market brea dth During the session, 108 companies were traded. Market breadth was skewed towards decliners as 28 equities advanced versus 30 that retreated. Volume of shares traded on the exchange decreased by 0.86 percent to reach 133.48mn shares, the value of shares traded decreased by 11.02 percent to stand at KD22.51mn. The Investment Sector was the volume leader yesterday, accounting for 35.27 percent of total shares and the Investment Sector was the value leader, with 25.83 per-
GLOBAL DAILY MARKET REPORT
Tuesday, December 7, 2010
Oil prices hit another two-year pinnacle LONDON: World oil prices surged yesterday to a new two-year peak, propelled by a raft of positive investor sentiment after the US Federal Reserve signalled more monetary easing could be on the way. In morning London deals, Brent North Sea crude for delivery in January soared to $92.03 per barrel, which was the best level since October 2008. It later stood at 91.41, down one cent from Friday’s closing level. And New York’s main contract, light sweet crude for January, hit a similar peak at $89.76, before pulling back to 89.17, down two cents from Friday. “Commodity prices are leaping from one high to the next,” said Commerzbank analyst Carsten Fritsch, citing various supportive factors. “The US Fed’s determination to fight economic weakness through huge expansion of the monetary base, general market optimism ... and ‘window-dressing’ by investment funds towards year-end ... are all factors contributing to the price rally.” Fed Chairman Ben Bernanke hinted over the weekend that the US central bank could ramp up its so-called quantita-
tive easing policy. More Fed action to combat unemployment is “certainly possible,” Bernanke said in an interview on Sunday. Bernanke was asked on CBS television if the Fed might inject more than the $600 billion planned for the November-to-June time frame. “It’s certainly possible,” he said. “It depends on the efficacy of the program. It depends, on inflation. And finally it depends on how the economy looks,” Bernanke added. The Fed recently decided to pump an extra $600 billion into the financial system, via the purchasing of US Treasury securities and other assets, as a means of galvanising the flagging US economy. Crude futures surged Friday as traders largely ignored disappointing US employment numbers in favour of a slumping US dollar. A weak greenback makes dollar-traded commodities more attractive for investors. Oil markets have also been cheered by strong energy demand, after a cold snap in Europe that is only just beginning to ease. — AFP
UAE’s Sheikh Khalifa approves personal credit ratings office cent of total traded value. Company-wise, National Ranges Company was the volume leader, with a total traded volume of 12.96mn shares changing hands. Zain was the value leader, with a total traded value of KD2.17mn. In terms of top gainers, Tamdeen Investment Co was the biggest gainer for the day, adding 6.85 percent and closed at KD0.265. On the other hand, United Real Estate Company came in as the biggest decliner, dropping by 8.33 percent and closed at KD0.099. Sector-w ise By sector, Food stocks
spearheaded advancers, clocking 3.18 percent in gains. Sector heavy-weight Kuwait Foodstuff Company (Americana) managed to eke out 3.90 percent in gains yesterday. On the other hand, shares of Ahli United Bank rose 2.97 percent sending the Global Non Kuwaiti Index up by 1.05 percent. Separately, shares of the market’s heavyweight, Burgan Bank rose 1.92 percent, lif ting the Global Banking Index up by 0.27 percent. Real Estate and Industrial stocks were the sole decliners yesterday, retreating by 0.33 percent and 0.17 percent respectively.
Corporate new s Central Bank of Kuwait (CBK) has given the go-ahead to Amar Finance & Leasing Co (Amar) for repurchasing or divesting 10 percent maximum of its issued shares for further 6 months, as of the current approval expiry on December 14, 2010. United Real Estate Co (URC) will lif t capital by KD40mn through floating 400mn shares at KD0.100 par value plus KD0.003 issue premium each. The subscription will run from Sunday, December 12, 2010 through Monday, December 27, 2010. It will be effected via Burgan Bank, AlShaheed Tower branch. The
capital top-up had been approved by the ordinary and extraordinary shareholder meetings, held on April 29, 2010 and May 20, 2010 respectively. Shareholders of record on Thursday, December 09, 2010 - the day preceding the secondary capital call - are entitled to the offering. Other shareholders have the right to subscribe to the remaining shares. Oil new s The price of OPEC basket of twelve crudes stood at $87.13 a barrel on Friday, compared with $86.14 the previous day, according to OPEC Secretariat calculations.
ABU DHABI: The United Arab Emirates president Sheikh Khalifa bin Zayed Al-Nahayan yesterday approved the launch of an office to assess individuals’ credit worthiness, which an official said should help banks make better lending decisions. “(The credit bureau) provides complete transparency on the status of clients and the bank would have a clear vision,” Federal National Council (FNC) speaker Abdul Aziz Al-Ghurair told reporters on the sidelines of the Gulf rulers summit in Abu Dhabi.
“This helps banks as well as clients avoid uncertainty,” he said. Ghurair, who is also the CEO of Dubai-based Mashreq Bank, said the plan will make the banking system in the world’s third largest oil exporter more conservative. “No doubt, more conservative in a positive way, it would be better for clients not to borrow more than they can afford and preserve reputation of the banking sector,” he said. The global credit crunch exposed borrowing excesses in the second largest Arab economy, where expa-
triates and locals alike enjoyed lavish lifestyles helped by easy credit during the oil-fueled boom years. The FNC, a parliamentary body which monitors and debates the government policy but cannot initiate any legislation by itself, passed the credit rating bureau bill last year. Its members have complained that the missing credit rating office left thousands of UAE citizens and residents exposed to heavy borrowing used for car and house mortgages as well as credit cards. —Reuters