JEDDAH, 4 July 2006 — The market capitalization of the Kuwait Stock Exchange reached KD39.23 billion in June, up 2.65 percent compared to May.
Kuwait stock market rose slightly in June, with the benchmark Global General Index registering a gain of 0.36 percent to end the month at 278.7 points. The market cap weighted index still reported an overall year-to-date loss of 12.97 percent at the end of first half of 2006, according to a report by the Kuwait-based Global Investment House (Global).
Kuwait Stock Exchange Price Index once again breached the psychological 10,000-point mark during the month, ending at 10,001.7 points.
The Kuwait Gazette reported the establishment of three new real estate companies, Marina-Towers (KD13 million), Al-Qebla Real Estate Company (KD1 million) and Rafco Real Estate International (KD1 million). The companies would operate in ownership and sale of land property, and real estate development locally and abroad.
The volume of shares traded saw an increase of 18.55 percent as compared to the previous month aggregating to 3.64 billion shares. On the other hand, value of shares traded also witnessed a substantial monthly increase of 23.76 percent to KD1.59 billion.
In June, it was International Investment Group, Gulf Petroleum Investment and Grand Real Estate Company (GRAND) that hogged the limelight as they were among the top price gainers with heightened trading activity.
According to reports, GRAND signed an SR4-billion contract ($1.07 billion) for a tourist project in Saudi Arabia. In addition, GRAND will be listed on the Dubai Financial Market (DFM) on July 12.
With the exception of the banking sector, all other sectors have ended the month on a positive note. Interestingly, during the first half of 2006, banking was the only sector to report year-to-date gains of 3.82 percent at the end of June.
On the corporate front, Kuwait Finance House (KFH) announced that it is launching a $250-million BAITAK fund to invest in Asian real estate. The five-year KFH Asian Real Estate Fund, set up in cooperation with Singapore based Pacific Star Group, is expected to achieve an annual return of 8 to 10 percent. Moreover, KFH also stated that it had singed a $20 million contract with a Turkish car fleet management company. Despite positive news, the stock price of KFH declined by 4.7 percent to reach KD2.04.
Meanwhile, Kuwait & Gulf Link Transport Company (KGL) said that it made KD20 million in profit from selling a 50-percent stake (100 million shares) in subsidiary KGL Logistic at 315 fils per share. Moreover, Kuwait and Gulf Link Ports International (KGL PI) — a subsidiary of Kuwait & Gulf Link Transport Company — signed a $1-billion, 40-year concession agreement to build a major container terminal in Egypt. As a result, the stock price of KGL appreciated by 6.7 percent to reach KD1.28.
On the other hand, index heavyweight, Public Warehousing Company (PWC) announced that the US military renewed a transportation contract worth about $300 million per year. It is a five-year contract with a total value of $1.5 billion. The stock price of PWC appreciated by 1.1 percent to KD1.86.
The market breadth was clearly in favor of decliners as 81 stocks fell compared to only 61 gainers. The major gainers during the month were Gulf Petroleum Investment (+54.8 percent), Kuwait Lebanese Real Estate Development (+41.0 percent), Kuwait United Poultry Company (+37.8 percent) and Kuwait Slaughter House (+30.4 percent).
The biggest losers in June were Hilal Cement Company (-17.6 percent), Ajial Real Estate and Entertainment (-17.5 percent), and Equipment Holding Company (-16.9 percent).
The market added four new companies during the month. Kuwait Bahrain International Exchange Co. was listed under the investment sector, National Company for Consumer Industries under the industrial sector, United Project Company under the service sector, while Ahli United Bank got listed under the non-Kuwaiti sector. So far, 14 new companies have been added to during the first half of 2006, which has increased the total number of listed companies to 172 at the end of June.
