(MENAFNEditorial) Kuwaiti listed companies witnessed much better performance in the fisr quarter of 2010 after all market sectors reported higher than expected net profits, which was the first time since the third quarter of 2008. Among the seven sectors, 168 Kuwaiti listed companies announced their financial results (excluding 14 Non-Kuwaiti companies, 14 companies with fiscal year not ending on December 31st, and 16 companies whose shares are suspended from trading (up till the date this report is published).
Aggregate profits for the 168 companies, which announced their results for the first quarter ending on March 31, 2010, stood at KD325.92mn, compared to KD74.51mn net profits reported in the same period in 2009, soaring 337.42 percent.
Overall, KSE managed to improve its performance dramatically in 2010 as compared to 2009, when all the companies were significantly affected by the international financial crisis. It’s worth mentioning that, the period given to listed companies for providing their interim financial results is 45 days and most of the companies released their financials on the deadline. However, 16 companies are still suspended for not releasing their interim financial results yet.
Investment Sector
Out of 51 listed companies in the sector, 41 announced their interim financial results. Aggregate net profit for the sector amounted to KD1.24mn compared to KD183.84mn net loss reported in the corresponding period of 2009. With this significant improvement, investment companies stole the lime light of all market sectors’ profitability.
34 listed companies managed to see better results in 1st quarter 2010. KIPCO Asset Management (KAMCO) witnessed the highest increase in its net profit, which amounted to 306.22 percent reaching KD1.02mn in 1Q-2010 compared to KD0.25mn net profit recorded in 1Q-2009. Gulf North Africa Holding Company and Kuwait Investment Company followed with 187.73 percent and 112.43 percent rise in their net profits, respectively. While, some of the investment companies reduced their net losses reported in 2009. For example, Global Investment house net losses diminished to KD14.17mn for the period ending on March 31, 2010 from KD69.5mn net losses reported in the corresponding period of 2009.
Services Sector
Total services sector profitability was negatively affected by the decline of 31.94 percent reported in Zain’s net profits for 1Q-2010 and 52.40 percent decrease in Agility. Services sector managed to register aggregate net profits of KD115.58mn in 1Q-2010, 15.86 percent lower than 1Q-2009 figures, after 48 out of 58 services companies listed on KSE, released its interim results. In terms of gainers, Aref Energy Holding Company witnessed extraordinary gains amounted to 14,944 percent reaching KD13.35mn. City Group Company reported the biggest decline in 1Q-2010 net profits amounted to 81.01 percent reaching KD0.642mn.
Real Estate Sector
The Real estate sector was the biggest loser in terms of net profits in 1Q-2010, after the sector’s aggregate net profits amounted to KD10.16mn compared to KD23.72mn recorded in 1Q-2009. The sector was sharply affected by noticeable retreat of 99.82 percent witnessed in Injazzat Real Estate Devlopment Company, which almost amounted to KD0.0025mn in 1Q-2010 compared to KD1.37net profits reported in 1Q-2009. However, heavy-weight, Mabanee Company reported KD5.25mn net profit in 1Q-2010 with an increase of 9.94 percent compared with net profits recorded in 1Q-2009.
Insurance and Food Sector
Despite challenges that the insurance sector is facing, it managed to enhance its first quarter results. The sector reported the highest increase of 2,809.3 percent in its aggregate net profits among all the market sectors amounting to KD9.25mn in 1Q-2010 backed by the tangible rise in Kuwait Insurance Company net profits, which was able to transform its KD5.95mn net loss recorded in 1Q-2009 to KD2.50mn net profit reported in 1Q-2010 on account of decline witnessed in its impairment loss on investment securities amounting to KD0.038mn. Food sector registered an increase of 157.96 percent in its 1Q- 2010 aggregate net profit amounting to KD18.59mn supported by 329.41 percent rise in Kuwait Foodstuff Company (Americana) net profits reaching KD13.87mn for the period ending on March 31, 2010.
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