(MENAFN - Arab Times) Kuwait stocks slipped 0.2 percent Monday closing at 6,065.3 points, ending a four-day rally. The index shed close to 15 points weighed by realty and banking scrips. Experts blamed pressures from the weak Asian equities of affecting regional investor sentiment amid lackluster trade. Zain closed flat while National Bank of Kuwait fell 1.8 percent. Kuwait Finance House shed 1 percent.
All sectors retreated except industrial, which moved sideways. The banking sector slipped 0.3 percent and food fell 0.4 percent. Realtors suffered the worst setback of 0.6 percent. A total of 56.7 million shares changed hands on Monday for KD 11.9 million. The volume dropped 19 percent day on day while value was down 37 percent at KD 11.9 million. A total of 1,139 deals were struck, 39 percent fewer than on Sunday. Meanwhile, Fitch Ratings has affirmed Kuwait's rating at AA. This rating reflects the nation's strong sovereign and external balance sheets that will continue to strengthen, even if oil prices fall from their current high, says Arnaud Louis, Associate Director in Fitch's Sovereign team.
"However, the high reliance of the Kuwait economy on oil increases volatility and risk, despite the mitigation afforded by large financial assets. Success in diversifying the economy and developing the private sector would be positive for the ratings."
Kuwait's public finances are very strong due to oil revenues. The country has recorded double-digit fiscal surpluses in every year since 1999. Fitch estimates a budget surplus of 21 percent of GDP in fiscal year 2010-2011 and forecasts a similar figure up to 2013, despite the expansionary budget for fiscal year 2011-2012. Public debt was just 7 percent of GDP at end-2010, most of it domestic, managed by the Central Bank of Kuwait as a tool to regulate domestic liquidity. The services sector was the largest mover of volume Monday pushing in excess of 21 million shares for KD 5.5 million. The sector showed a selling bias posting a fall of 0.2 percent. The sector's volume accounted for 27 percent of the total market volume.
Aviation Lease and Finance Company (ALAFCO) contributed a major chunk of that volume topping the day's chat with 12.8 million shares. The company shed 5 fils to close 350 fils. Meanwhile, heavy weights Agility closed 295 fils after taking out 5 fils, selling a little over a quarter million shares.
Aviation Lease & Finance Company had earlier announced an agreement with Airbus SAS to waive six aircraft out of 18 contracted aircraft, generating KD 17 million profit. These earnings will be reflected on the company's financial results for the financial year ending September 30, company sources said.
Mobile Telecommunications Company, Zain, after suffering an mid-trading setback of more than 1 percent, clawed back just in time to close KD 1. National Mobile Telecommunications Company, Wataniya, lucked out suffering a decline. IT lost 20 fils to close KD 2.020.
Meanwhile, a couple of company's are expecting to discuss financial statements for the second quarter ended June 30, 2011. Oula Fuel Marketing Company announced that its Board of Directors will meet on July 26, while Kuwait Cable Vision Company announced that its Board of Directors will meet on July 24, 2011. Ras Al Khayma for White Cement Company has set its date for July 30. Gulf Glass Manufacturing Company will meet on July 25.
In the banking sector a total of 2.3 million shares changed hands, for KD 1.5 million. The volume was down 44 percent, while value fell 11 percent. National Bank of Kuwait lost 20 fils to close KD 1.080. It sold 1.05 million shares.
Ahli United Bank was the only winner in the sector taking in 20 fils to close 920 fils. Gulf Bank, Kuwait International Bank, Burgan Bank and Boubyan Bank moved sideways. Commercial Bank of Kuwait suffered a fall of 30 fils to close 840 fils.
The investment sector fell 0.3 percent on par with banking sector. The sector pushed 6.2 million shares, 46 percent down from Sunday's trading, and earned 23 percent lesser amount. Kuwait Investment Company closed flat at 106 fils.
International Financial Advisors lost 1.5 fils to close 222 fils. Kuwait Projects Company closed flat. Coast Investment and Development Company took out 1 fil to close 61 fils.
Al Madina for Finance and Investment Company announced the approval of the Central Bank of Kuwait on July 21 to renew the company's approval to buy back up to 10 percent of its issued shares over a six-month period starting from the end of the current approval on July 25, 2011.
Among the top gainers of the day is First Takaful Insurance Company which led the list of winners at 7.6 percent, followed by Sultan Center Food Company that gained 4.17 percent. Livestock Transport and Trading Company at 3.6 percent, while Kout Food Group climbed 2.7 percent. Ikarus Petroleum Industries Company was at 2.6 percent.
On the flip side, Burgan Well Drilling Company took the hardest blow at 8.9 percent. First Dubai for Real Estate Development was close on the heels falling 8.16 percent, followed by Real Estate Trade Centers Company at 7.69 percent.
Kuwait Commercial Markets Complex Company was down 6.41 percent, while Al Dar National Real Estate Company fell 5.7 percent.
In terms of fils, Ahli United Bank, Mabanee Company, Boubyan Petrochemicals Company, Livestock Transport and Trading Company and Kout Food Group advanced by 20 fils apiece.
Kuwait Food Company shed the biggest in terms of price, taking out 40 fils. Commercial Bank of Kuwait lost 30 fils, Burgan Well Drilling Company lost 30 fils. National Bank of Kuwait and Gulf Cables and Electrical Industries Company shed 20 fils apiece.
The best seller in the market was Aviation Lease and Finance Company, pushing 12.8 million shares. Abyaar Real Estate Development Company sold 9.6 million shares. Boubyan Petrochemical Company sold 3.5 million shares, followed by Al Safwa Group Company at 2.5 million shares and Al Safat Energy Holding Company at 2.4 million.