Sunday 15 November 2009

Kuwaiti Shares Decline to Seven-Month Low; Abu Dhabi Advances

Kuwaiti shares tumbled to their lowest level since April after Burgan Bank SAK became the country’s latest company to report lower third-quarter earnings.

Agility, the Middle East’s biggest storage and logistics company, declined for a fourth day, the longest losing streak since March. National Investments, the Kuwaiti asset management company, slid to the lowest level in more than three months. Burgan Bank, a Kuwaiti lender, retreated to a two-month low after it said third-quarter profit tumbled 91 percent. The Kuwait Stock Exchange Index fell 2 percent to 6,918.40. The measure, which was down for a sixth day, has declined 5.7 percent since Nov. 5 and 11 percent this year.

“Recently index heavyweight Agility announced pretty flat third-quarter numbers and given that it was trading near a high, it’s not surprising the stock is correcting,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. There are no strong catalysts to push the index higher, he said, and there isn’t a lot of analyst coverage to give investors the opportunity to “take advantage of any possible attractive valuations.”

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