Speculations place pressure over Kuwait warba bank's stocks

Traders are queuing at brokerage offices at Kuwait Stock Exchange (KSE) for the second day running Monday, bullish on recently-listed Warba Bank's stocks. The large number of traders were merging shares, buying or selling them or receiving cheques of their sold stocks. Most of Warba bank's shareholders blame KSE administration, Kuwait Clearing Company and brokers who were discussing, since yesterday, how to control daily problems resulting from numerous transactions. Shareholders are blaming the three parties - KSE management, Kuwait Clearing Company and brokers - for the long time they were taking to address the issue. Analysts, in different statements to KUNA, said the three parties did not expect "this influx" of people who were standing in long queus to do their transactions. Nayef Al-Enezi blamed the KSE administration for improper organization and that procedures to finalize transactions included many flaws, which thus confused the market and brokerage firms. Mohammad Al-Hajri said today's intensive transactions on Warba Bank's stocks caused panic among shareholders who rushed to sell their stocks in the wake of weak demand. He also said some speculators were exercising pressure upon shareholders to sell their stocks in return of cash. Adnan Al-Dulaimi, another analyst, said speculations brought down Warba Bank's stock to the lowest level "which was an unexpected development thus forcing some to sell their stocks." The share reached its peak today at 425 fils but closed the day at 375 fils. The volume of shares traded were 37.9 million via 9,557 transactions with a value of KD 15.7 million. Warba Bank was established on February 17 2010 with a KD 100 million of paid capital. Government-owned Public Investment Authority owns 24 percent of the bank.