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KSE benchmark moves within narrow range this week.

Kuwait Stock Exchange (KSE) showed mixed

performance during the just-ended trading week with the benchmark closing in

green, according to economic reports issued here on Thursday. The KSE price index ended with gain of 1.9 percent, closing at 6,582

points, after it touched an intraweek low of 6,470 points, whereas the

weighted index increased by 1.9 percent to close at 411 level, Kuwait

Financial Centre (Markaz) said in its weekly market update (July 18-22). The market rally was mainly led by the banking sector. All sector indices

ended in positive territory and the major gainer was the banking sector which

rose 2.6 percent followed by the food and the industrial sectors which moved

up 1.9 percent and 1.5 percent respectively. The service and the real estate sectors gained over one percent each, the

report said. The report attributed the gains to the partial return of investor

confidence which prod the buying activity after the remarkable increase in the

cash flow and the upbeat messages sent by the government. Deputy Prime Minister for Economic Affairs, Minister of State for

Development Affairs and Minister of State for Housing Affairs Sheikh Ahmad

Fahad Al-Ahmad Al-Sabah has recently announced a package of government

measures to regulate and bail out the stock market. The measures would be tendered to His Highness the Prime Minister Sheikh

Nasser Al-Mohammad Al-Ahmad Al-Sabah upon his return from his Latin American

tour, the report quoted Sheikh Ahmad as saying. The remarks showed that the government was serious about finding effective

solutions to the financial problems, it affirmed. The revival of the market is also attributable to the announcement of gains

in the first half of the year by major banks such as Kuwait Finance House

(KFH). These positive financial results helped alleviate the investor concerns

about the outlook of the global economy which were raised by the negative

remarks of Chairman of the US Federal Reserve Ben Shalom Bernanke. Most of investors are now convinced that the local stock market is affected

by domestic problems in the first place although it's not totally immune to

the impacts of the regional and international problems, according to the

Markaz report. Meanwhile, Gulfinvest International K.S.C.C (GII), a leading investment

company with focus on Kuwait and other GCC countries, reported that KSE made

across the board gains in this week.

The report attributed the gains to the disclosure of good financial results

by major players namely the banking sector in the first quarter of the year. The stimulus measures to be tabled to His Highness the Prime Minister also

sent upbeat messages to investors, pushing up the volume and value of the

traded shares. The intraweek wavering of the market resulted from the wariness of

investors before the announcement of the first half financial results of the

major players, the report pointed out. The banking sector led the gainers, accounting for 27.1 percent of the

total volume of traded shares this week, according to the report. Up to 12.8 million shares of the National Bank of Kuwait (NBK) changed

hands with the turnover amounting to KD 15.3 million while 11.4 million of KFH

shares were traded at a value of KD 11.4 million. The service sector came in the second place, accounting for 26.9 percent of

the total number of traded shares. Some 15.3 million of Zain stocks were traded at a value of KD 18 million

while 46.3 million of Al-Rabeta stocks changed handed at KD 8.3 million. The investment sector came third with 16.9 percent of the traded shares. Some 100.5 million of Al-Salam share were traded at KD 9.3 million whereas

30 million shares of Sahel changed hands at KD 3.8 million, according to the

Gulfinvest report.

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Publication:Kuwait News Agency (KUNA)
Date:Jul 22, 2010
Words:653
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