Global Investment House- Kuwait- Kuwait Stock Exchange Performance – September 2007 – During the month of September’ 2007, Kuwait market continued its northward movement. “Global” General Index reported a monthly increase of 0.77% as it ended the month of September-07 at 393.98 points. The market capitalization reached KD59.11bn at the end of the month, registering a gain of 1.47% as compared to the previous month. Kuwait Stock Exchange (KSE) Price Index closed at 12,848.7 points, reporting a monthly gain of 1.28% in September-07. “Global” General Index has reported YTD gain of 35.5% by the end of September-07.
The overall trading activity was mixed during the month. Volume of shares traded on the bourse witnessed a monthly decline of 3.4%, aggregating to 7.21bn shares in the month. On the other hand, value of shares traded on the bourse witnessed a monthly increase of 9.0%, aggregating to KD3.27bn in the month.
Global Industrial index recorded the highest gain during the month, reporting a monthly increase of 5.8%. Share price of Boubyan Petrochemical Company increased by 20.4% during the month. Boubyan Petrochemical Company sold its stake in one of its indirect investments in a Saudi manufacturing company and realized a profit of KD3.7mn (8fils per share). The profits will be reflected in the financial statements for the second quarter ended October 31, 2007.
Global Banking Sector index increased by 2.5% during the month. Among the sector’s components, the share price of Al-Ahli Bank of Kuwait appreciated by 18.0% during the month. The share price of Bank of Kuwait and the Middle East also appreciated by 3.5% during the month.
National Bank of Kuwait was the value leader during the month with 140.5mn shares changing hands at a value KD337.6mn. Zain (MTC) was among the top value leaders of the month with 25.0mn shares changing hands at a value KD109.4mn. Recently Zain signed two Islamic syndicated loans worth a total of US$7.39bn via book runners BNP Paribas, Calyon, Citigroup and Samba. Zain signed two year US$4.89bn murabaha guarantee facility to help pay for the license it won to operate Saudi Arabia’s third mobile network, and a two year US$2.5bn facility to be used to refinance the borrower’s US$1.2bn murabaha facility signed in December 2006.
Al Safwa Group Company was the top volume leader for the month with 590.8mn shares changing hands at a value KD87.9mn. Ekttitab Holding Company was also among the top volume and value leaders of the month with 457.9mn shares changing hands at a value KD143.8mn. Ekttitab Holding has denied media reports regarding its intentions to sell its shares in Dubai developer Deyaar Real Estate Company.
Market breadth during the month was almost evenly balanced with 82 advancers and 81 decliners, whereas the prices of 28 stocks remained unchanged. The biggest gainers during the month were Gulf Horizon Holding Company (34.3%), Burgan Group Holding Company (32.5%), and Kuwait Building Materials Manufacturing Co (25.4%).
Liquidity remains high which can be seen from the fact that money supply, which rose in August at the second-fastest pace this year. M3, the broad measure of money circulating in the economy, rose 18.9 percent to reach KD17.88bn on August 31, compared with KD15.04bn a year-earlier, according to data published by the Central Bank of Kuwait (CBK). Quasi-money, which includes savings, time deposits and foreign currency deposits of resident sectors except the government, jumped 21.1 percent in August, the data showed. Annual inflation of Kuwait topped 5 percent for three consecutive months to the end of May, before easing in June for the first time in eight months, to 4.36 percent. Kuwait's central bank had blamed rising inflation on the Dinar's peg to the US Dollar, saying that the US currency's slide against the Euro this year was raising import costs.
We believe that the bullish sentiments prevailing in the market will continue to boost the trading activities. Also the positive macroeconomic environment will further improve investors’ confidence in the Kuwaiti market. However the short-term direction of the market will be dictated by the 3Q-2007 results.
© 2007 Al Bawaba (www.albawaba.com )