KSE to launch new trading system

Kuwait Stock Exchange is to launch next week a new trading system and a new index for the most capitalised firms, KSE director general Faleh Al Raqaba said yesterday. The new X-stream system, installed by Nasdaq OMX, involved the supply of new technology and will help improve transparency, market data and surveillance, Al Raqaba said. The system will be launched on Sunday along with a new index for the largest 15 firms in terms of market value and the value of circulated liquidity. The Kuwait-15 Index will start from 1,000 points, he said. Eight of Kuwait's nine commercial banks are among the 15 companies comprising the new index which is estimated to be worth two-thirds of the market capitalisation of $105 billion (Dh385.6 billion). Market leader National Bank of Kuwait, telecom giant Zain and Kuwait Finance House, the leading Islamic bank, are part of the new index which will be reviewed every six months.

Al Buhaira Insurance

Al Buhaira National Insurance Co (ABNIC) revenue stood at Dh172 million during the first quarter 2012 compared to Dh193 million for the corresponding quarter of 2011. The company posted Dh18 million as its underwriting profit compared to Dh23 million in the 2011 quarter. In a statement, the company attributed it to general economic conditions in the UAE as well as growing competition. The company's net profit was Dh18 million compared to Dh22 million in the 2011 quarter. Total assets stood at Dh1,879 million compared to Dh1,935 million. Shareholders equity rose to Dh618 million compared to Dh593 million.

Sahara Petrochemical

Saudi Arabia's Sahara Petrochemical said on Tuesday a number of its affiliates signed Sharia-compliant financing agreements worth 5.1 billion Saudi riyals (Dh4.9 billon) with local lenders to finance projects at Jubail Industrial City. Tasnee & Sahara Olefins, Saudi Acrylic Acid, Saudi Acrylic Monomers and Saudi Superabsorbent Polymers signed the deals with nine Saudi lenders including Al Rajhi Bank, Samba Financial Group and Banque Saudi Fransi, it said in a statement posted on the Saudi bourse website. The 16-year loans will be guaranteed by promissory notes and will be repaid on a half-yearly instalment basis, it said. The amount will be used to finance the affiliates' projects in the acrylic acid and its derivatives project located at Jubail Industrial city in partnership with Dow Chemical Co and Evonik of Germany. The project is expected to start operation in the first quarter of 2013.

Al Baraka Banking

Bahrain-based Islamic lender Al Baraka Banking Group posted a seven per cent increase in first-quarter net income, the bank said in a statement yesterday. The bank, which has operations in 15 countries including Turkey, Syria and Egypt, made a profit of $57.4 million (Dh210.8 million) for the first quarter, compared with $53.5 million in the first three months of 2011. The increase in profit came despite continuing political and economic upheaval in a number of the markets in which the group operated, as well as the impact of debt issues in the Eurozone, Shaikh Saleh Abdullah Kamal, chairman of Al Baraka, said.

Dana Gas

Dana Gas dropped to the lowest level in three months after investors were said to have hired law firm Linklaters LLP to help negotiate the restructuring of $1 billion (Dh3.67 billion) in Islamic bonds due this year. The shares of the company fell 2.3 per cent to Dh0.42, the lowest since February 12, at the 2pm close in Abu Dhabi. The London-based law firm was hired last month, said people familiar with the matter. The company hired Blackstone Group LP to advise on restructuring the Islamic bonds, sources said in April.

Vela International

Vela International Marine Ltd, the shipping unit of Saudi Aramco, booked at least four supertankers to ship crude to the US, according to data from Optima Shipbrokers. The very large crude carriers each carrying about two million barrels will load between May 25 and June 10, according to reports.

— Compiled from staff reports and agencies