JEDDAH, 8 February 2006 — The market capitalization of the Kuwaiti stock exchange reached KD43.38 billion, with two new companies added in January.

According to a report by the Kuwait-based Global Investment House (Global), the Kuwait Stock Exchange Index closed for the month at 11,855.7 points, recording an increase of 3.59 percent over the previous month. The volume and value of shares traded on the bourse declined due to reduced number of trading days in the month. The volume of shares traded on the KSE amounted to 2.98 billion shares at the value of KD1.4 billion in January.

The Kuwait market as measured by the Global’s General Index advanced 3.42 percent to end the month at 331.19 points.

The banking sector represented through the Global Banking Index produced 4.42 percent in gains. During January, three banks reported 2005 profits with an aggregate earnings growth of 41.3 percent, up from KD286.99 million to KD405.76 million.

But it was the non-Kuwaiti sector that continued to lead the market in January, continuing its positive run from 2005. The sector as a whole advanced by 19.92 percent by the month’s end. Although only GFH and Fujairah Cement Industries Company reported earnings for 2005, investors seem to be targeting stocks in anticipation of strong profit numbers.

Non-Kuwaiti stocks led the KSE as Egypt-Kuwait Holding Co. reported a whopping growth of 70.1 percent during the month, followed by Solidere A stock, which reported monthly gains of 56.1 percent. The market seems to have responded well to the recent announcement by the Egypt Kuwait Holding Company that one of its subsidiaries established an oil exploration joint stock company with an authorized capital of $1 billion and paid-up capital of $300 million.

The Global’s Real Estate Sector Index advanced by 2.5 percent during January. The major factor constraining gains in the sector have been concerns surrounding end of year earnings. Investors now seem to be quite confident that the real estate sector will report good aggregate profits, looking at the results of the first nine-months.

The market breadth was clearly favoring the advancers with 80 stocks advancing and 60 stocks declining, while 20 stocks remained unchanged.

The market added two new companies in January, both in the services sector, which are IFA Hotels & Resorts Co. and Combined Group Contracting Company. The total number of listed companies reached 160 at the end of January.