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MONDAY, JANUARY 10, 2011
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KSE equities mixed GLOBAL DAILY MARKET REPORT KUWAIT: Kuwait Stock Exchange stocks ended on a mixed note yesterday, as investors followed some rumors in local newspapers regarding Agility case In US courts. This caused panic between investors as they started to sell in early trading session. Later on, the logistic service provider, denied this news, adding that the US authorities had introduced a procedural amendment to the indictment filed in November 2009. Agility decline by 4.00 percent to close at KD0.480 and negatively affecting the performance of the Services sector. On a technical overview on Agility, the price can go further down to KD0.465 and KD0.435 if it sustains a close below the resistance area at KD0.510 - KD0.530. On the other hand, the Banking sector helped the Global General Index to end the session in positive note, adding 0.05 percent. Global Banking Sector Index rose by 1.11 percent by the end of the session. Global General Index (GGI) closed 0.10 points up (0.05 percent), at 225.02 point as the Market capitalization increased reaching KD36.59mn. On the other side, Kuwait Stock Exchange Price Index closed in the red zone shedding 9.20 points (0.13 percent) from its value and closed at 6,966.4 point. Market breadth During the session, 119 companies were traded. Market breadth was skewed towards decliners as 29 equities advanced versus 50 that retreated. Volume of shares traded on the exchange increased by 21.0 percent to reach 311.07mn shares, the value of shares traded increased by a 30.92 percent to stand at KD51.65mn. The Investment Sector was the volume leader today, accounting for 38.37 percent of total shares and the Services Sector was the value leader, with 31.91 percent of total traded value. Company-wise, International
Financial Advisors (IFA) was the volume leader, with a total traded volume of 52.64mn shares. changing hands. National Bank of Kuwait (NBK) was the value leader, with a total traded value of KD6.91mn. In terms of top gainers, Gulf Investment House was the biggest gainer for the day, adding 9.62 percent and closed at KD0.0.57. On the other side, Bayan Investment Company came in as the biggest decliner, dropping by 8.62 percent and closed at KD0.53 Sector-wise On a sector-by-sector basis, six out of the eight sectors reported declines. Services stocks spearheaded decliners, as highlighted by a 1.24 percent loss in the Global Services Index. A 20fils dip in the equity price of Mobile Telecommunication Co (ZAIN) and a 20 fils withdrawal posted by National Mobile Telecommunications Co, (NMTC) skewed the sector index.
Non Kuwaiti companies were also notable losers during the day. The sector as a whole, presented through the Global Non Kuwaiti Index, produced 0.48 percent in losses. The sector’s heavy-weights headed the pack of decliners. Ahli United Bank released 0.98 percent. The sole advancer during Tuesday’s session, was the banking sector, up by a modest 1.11 percent. National Bank of Kuwait (NBK) was up by 1.37 percent as investors looked ahead to their earnings report. Corporate news Gulf Cable and Electrical Industries Company. made a clarification of the news published in a local newspaper about winning three contracts worth KD23.5mn. The KSE-listed company said it had been declared the lowest bidder by the Central Tenders Committee (CTC) and was completing some government procedures. However, it did not receive an award letter.
First Investment Company (FIC), has made a clarification of the news published in a local newspaper about divestitures in Saudi Arabia. The KSE-listed firm declares that it owns a 9.65 percent stake in the KSA-based Mutahed Company, a real estate firm, which undertakes buying, selling land plots and operating hotels. The company has been undergoing a revamping process since three years due to legal problems in the Kingdom, FIC noted, adding that it has no information about any divestitures. Oil news price of OPEC basket of twelve crudes stood at $91.27 a barrel on Tuesday, compared with $89.79 the previous day, according to OPEC Secretariat calculations. Oil prices could rise to $110 per barrel within a few weeks on speculation, which may prompt OPEC to raise production, a member of Kuwait’s Supreme Petroleum Council (SPC) said yesterday.
Subsidy cut trims Iran’s gas use TEHRAN: Iran’s consumption of natural gas has dropped by more than 20 million cubic metres a day since the government cut price subsidies three weeks ago, the state TV website said yesterday, quoting a senior Oil Ministry official. “Since the enforcement of the targetedsubsidy law (on Dec. 19) up to now, the consumption of gas in the household, commercial and semi-industrial sectors has dropped by 20-21 million cubic metres a day,” Javad Oji, head of the National Iranian Gas Co, told a TV program. Oji did not say what consumption was before the subsidy cut, but Iranian officials usually say Iran consumes around 500 million cubic metres during peak times of the year. The drop in the national consumption of gas in households was an average of 6 percent, he said, but reached 15 percent in the populous capital Tehran. “Considering that some of the fuel consumed by industrial and power station units are imported from abroad, this level of drop in gas consumption in the household sector amounts to an average of $16-16.5 million a day in import savings,” Oji said. Households could further reduce gas use as close to 30 percent of consumption in this sector is wasted, he said, adding that gas could provide the feedstock for several
petrochemical units. Oji said gas production in Iran stood at 600 million cubic metres a day and is expected to remain at that level over the next three years. “Currently 600 million cubic metres of sweet and sour (sulphurous) gas are produced daily in Iran. This level of output drops to 510-520 million cubic metres after being processed at 13 refineries,” he said. Iran announced the plan on phasing out subsidies on essential items like food and fuel as a way to save government cash and cut wasteful consumption. President Mahmoud Ahmadinejad called the move to eventually eliminate the $100 billion per year the state pays to keep down prices, “the biggest economic plan in the past 50 years”. The subsidy phase-out had been due to start in the second half of the Iranian year, which began on Sept. 23, but the authorities delayed implementation of the plan several times due to its politically sensitive nature. Iran is the world’s fifth largest oil exporter and sits on the world’s second largest natural gas reserves after Russia, but sanctions have slowed the development of the industry. The Islamic Republic says it needs around $25 billion a year in oil and gas industry investment to meet its target development goal in the sector. —Reuters
Abu Dhabi’s Al-Maabar to push ahead with projects ABU DHABI: Abu Dhabi’s Al Maabar will invest $300 million in a luxury hotel in Jordan and move ahead with its planned projects in the Middle East and North Africa (MENA), its managing director said yesterday. The 270-room hotel in Amman to be branded St. Regis from the Starwood stable will be ready in first quarter of 2014 and will also include residential apartments and highend shops. “There is tremendous demand for hotels in Jordan from wealthy residents, expats and tourists and banks are willing to finance,” Yousef al Nowais told reporters in Abu Dhabi. Al Maabar owned jointly by Abu Dhabi’s sovereign wealth fund Mubadala and leading property developers, including Aldar Properties, will build 350 to 400 townhouses and related facilities costing $250 million in Aqaba, Jordan as part of a larger develop-
ment called Marsa Zayed. “The bigger development depends on when the land will be given to us by the Jordanian authorities. It is linked to the port,” he said. The first phase of the Bab al Bahr mixed-use project in Rabat, Morocco comprising 220 units is sold out with the second phase to start soon, he said. In Tripoli, Libya the $300 million Al Waha development will start in first quarter 2011. In Iraq, negotiations are underway for a community project with an agreement to be signed within a month or two, he said. Al Maabar has about $1 billion worth of projects under development currently, said Chief Executive Abdallah Hageali. Maabar’s shareholders include Mubadala, Aldar Properties, Sorouh Real Estate, Al Qudra, Reem Investments and Reem International, all Abu Dhabi-based companies.— Reuters