Kuwait Stock Exchange Suspends 5 Additional Companies for Failure to Pay Listing Fees

The KSE announced that it had suspended seven companies from trading due to failure to pay 2010-2011 listing fees.  Two of the companies, Shabka and Safat Global, were already suspended for failure to pay the previous year's listing fee.

While financial distress is not the only reason why a Company might not pay the fee, it's a pretty safe bet that most of the companies on the list did not pay for that reason.  Six of them  them have already been suspended for failure to provide financial reports.  Some for quite extended periods.  For those previously suspended, I've highlighted the word  "موقوفة " in blue.

The companies are (listed in the same order as the Arabic):

1. International Investment Group
2. Gulf Invest  aka Gulfinvest International
3. Pearl (Lu'lu) Real Estate
4. Safat Global
5. Mushrif Trading and Contracting (the only company on the list not suspended for failure to provide financials)
6. Al-Abraj Holding
7. Shabka Holding

 

[10:26:55]  ِ.إيقاف شركات عن التداول لعدم تسديد رسوم الاشتراك السنوي ‏
يعلن سوق الكويت للأوراق المالية بأنه تم إيقاف تداول الشركات
التالية لعدم تسديد رسوم الاشتراك السنوي لعام 2010- 2011 ‏
اعتباراً من اليوم 1-09-2010:- ‏
ِ1- المجموعة الدولية للاستثمار ‏(المجموعة د)(موقوفة) ‏
ِ2- الشركة الخليجية الدولية للاستثمار ‏(غلف انفست)(موقوفة) ‏
ِ3- شركة لؤلؤة الكويت العقارية ‏(لؤلؤة)(موقوفة) ‏
ِ4- شركة الصفاة العالمية القابضة ‏(صفاة عالمي) (موقوفة) ‏
ِ5- شركة مشرف للتجارة والمقاولات ‏(مشرف) ‏
ِ6- شركة الابراج القابضة ‏(الابراج)(موقوفة) ‏
ِ7- شركة الشبكة القابضة ‏(الشبكة)(موقوفة) ‏
علما بان اخر موعد للسداد هو 31-08-2010 .‏
علما بان اخر موعد للسداد هو 31-08-2010 .‏

Shabka Holding Reports 31 December 2009 Financials: Negative Equity of KD16.3 Million

Today the KSE had announcements on several Shabka Holding financial reports.  As you'll recall they were past due on these as far back as 31 March 2009.  Today it released four, the latest being 31 December 2009.  You'll notice from the press release that the FY 2009 financials were approved by Shabkha's Board on 15 February this year.  It's not clear what was responsible for the delay in issuance.

The headline numbers are a loss of KD13.5 million for Fiscal 2009 versus a loss of KD28.6 million in 2008.  And negative equity of  KD16.3 million at the end of 2009 as opposed to negative equity of KD8.7 million in 2008. Presumably there were KD5.9 million of increases in the fair value of investments.  

Readers of this blog are well aware of the usual practice in the area.  So while Shabkha doesn't appear to have issued a press release (I can't access their website), I am sure they would have noted the dramatic improvement in earnings and the robust nature of their investments which increased substantially. And it seems to me that operating for two years with negative equity is one demonstration of a proven business model - at least by local standards.

Shabka's auditors did note that there are doubts about the going concern assumption.  And that no adjustments had been made to the value of the assets to reflect the current situation.   In light of these facts and the inability to obtain sufficient data they disclaimed any opinion on the the Company's 31 December 2009 financials.

Shabka's Board also announced that it was recommending to shareholders that they not declare any dividends for Fiscal 2009.

Having lost much more than 75% of their paid in capital, it would seem that the Company would have been required under Kuwaiti Commercial Law to hold a shareholders' meeting to agree plans to fix the situation or to vote for dissolution.  That isn't addressed here.  Nor should it necessarily be addressed here.

[13:5:2]  مجلس ادارة (الشبكة) يوصي بعدم توزيع ارباح عن عام 2009‏
يعلن سوق الكويت للأوراق المالية أن مجلس ادارة شركة الشبكة القابضة
ِ(الشبكة) قد اجتمع يوم الاثنين الموافق 15-02-2010، واعتمد
البيانات السنوية للسنة المنتهية في 31-12-2009 .‏
وفقا لما يلي:‏
البند             السنة المنتهية في 31-12-09   السنة المنتهية في 31-12-08‏
الربح(خسارة)(د.ك)                 (13.518.904)      (28.583.572)‏
ربحيةالسهم (فلس كويتي)              (150.7)               (324.8)‏
اجمالي الموجودات المتداولة      563.499              7.483.980‏
اجمالي الموجودات               15.044.857          21.821.778‏
اجمالي المطلوبات المتداولة      28.263.814          27.441.875‏
ِ اجمالي المطلوبات               28.263.814          27.441.875‏
ِ اجمالي حقوق المساهمين        (16.295.984)         (8.697.124)‏
بلغ اجمالي الايرادات من التعاملات مع الاطراف ذات الصلة مبلغ 0 د.ك
بلغ اجمالي المصروفات من التعاملات مع الاطراف ذات الصلة مبلغ(128.027)د.ك
التوزيعات المقترحة :‏
قرر مجلس ادارة الشركة عدم توزيع ارباح عن السنة المالية المنتهية في ‏
ِ31-12-2009 .‏
علما بان هذه التوصية تخضع لموافقة الجمعية العمومية والجهات المختصة .‏
علما بان تقرير مراقبي الحسابات يحتوي على محدودية النطاق التالية :‏
تكبدت المجموعه خسارة بمبلغ 15.243.545 د.ك (2008: 28.938.566د.ك)‏
منها خسارة بمبلغ 13.518.904 د.ك (2008: 28.583.572 د.ك)‏
تتعلق بمساهمي الشركة الام للسنة المنتهية في 31 ديسمبر 2009، وكما في ذلك
التاريخ كان لدى المجموعه اجمالي خسائر متراكمه بمبلغ 44.159.781 د.ك ‏
ِ(2008 : خسائر متراكمه 30.640.877 د.ك) ‏وصافي عجز بمبلغ13.218.957 د.ك
ِ(2008 : عجز بمبلغ 5.620.097 د.ك).‏ وبالاضافة الى ذلك ،تأخرت المجموعة ‏
في الوفاء بالتزام الدين بمبلغ 28.135.787 د.ك (2008 27.441.875 د.ك).‏
لقد نما الى علمنا من ادارة الشركة الام انهم بصدد ‏تقييم عدة استراتيجيات
اتحسين الاداء التشغيلي للمجموعه والمركز المالي وكفاية الموارد المالية ‏
للمجموعة لكي تتمكن من متابعة اعمالها على اساس مبدأ الاستمرارية .‏
ليس من الممكن الان ان يتم تحديد المحصلة النهائية لهذه الاستراتيجيات.‏
إن الامور المبينه في الفقره اعلاه تشير الى وجود عدم تأكد ماديه مما يؤدي ‏
الى وجود شك كبير على قدرة المجموعه على متابعه اعماله على اساس مبدأ ‏
الاستمراريه، قد يؤثر هذا على صحة افتراض الاستمراريه الذي تم على
اساسه اعداد المعلومات المالية المجمعه . ان صحة افتراض مبدأ الاستمرارية تم
على اساسة اعداد البيانات المالية المجمعة تستند الى تحقيق نتائج ايجابية في
ِ الامور المبينه في الايضاح 2 ، ان البيانات المالية المجمعة المرفقة لا ‏
تتضمن اية تعديلات فيما يتعلق بتحقيق وتصنيف مبالغ الموجودات والتي
والتي قد تكون ضرورية اذا لم تتمكن المجموعة من متابعة اعمالها ‏
على اساس مبدأ الاستمراريه . في حالة عدم صحة افتراض مبدأ الاستمرارية ، ‏
فإنه يتعين اجراء تعديلات كي يبين الموقف الحالي فيما يتعلق بالموجودات
التى قد ينبغي تحققها بمبالغ تختلف عن المبالغ المسجله بها حاليا ضمن بيان ‏
المركز المالي المجمع . اضافة الى ذلك ، يتعين على المجموعة احتساب مخصص ‏
للمطلوبات الاضافية التي تنشأ. لم يتم اجراء اية تعديلات في البيانات ‏
المالية المجمعة للمجموعة فيما يتعلق بهذه الامور .‏
عدم ابداء الرأي :‏
بسبب التأثر المادي للأمر المبين في الفقرات السابقه ، لم نتمكن من الحصول
على الادلة المناسبة والكافيه لتوفير أساس لرأي التدقيق وبالتالي، فأننا ‏
لانعبر عن رأينا حول البيانات المالية المجمعة .‏

AlJoman - Why the Kuwait Stock Exchange Needs Strong Regulation

Earlier this month AlQabas published a lengthy summary of a recent report by AlJoman Center for Economic Consultancy.  Here's the full report from AlJoman's website.  

You'll notice that AlQ has reordered the topics.  We'll work with AlQ's order in this post.  

The article is a blistering attack on market manipulation and regulatory failures. 

1. Al Joman says that there are about 15 main "investment blocs" that each control from 2 to more than 10 companies that are active in the KSE.  According to its analysis only a very few of them engage in professional or responsible behavior. 
   
2. Three of the groups have fallen and AlJ expects at least one other to this year.
3. The first group mentioned is the Abraj Bloc (Abraj Holdings, Shabka Holdings, and International Leasing and Investment).
4. The second is the Ahlia Bloc (AlAhlia Holding Company and Gulf Invest).
5. The third the International Group Bloc (PetroGulf, Grand, Investors Bank, Usul, and International Investment Group.)
6.  It then turns to a discussion of large and unjustified losses to the shareholders of the companies comprising these groups - which it notes shake confidence in the KSE as well as harm its foreign reputation stating that they consider that removing these distressed companies from the list of traded companies (presumably an expulsion from the KSE) would be considered a positive step. even if only partially (meaning this step by itself is not sufficient).  And that it is possible to lighten the harm caused shareholders and the economy by  removing  these long notorious companies instead of having let them continue to exhausting shareholder money for a long time and in a clear open fashion visible to all.  Clear responsibility for this state of affairs is laid upon the management of the KSE.

I've sort of given away the plot here.  The original research report by Al Joman begins "innocently" enough with a discussion of  the decline in KSE trading in April compared to May.   After presenting some comparative statistics, AlJ begins to describe the reasons.  The first hint is the comment that negligent traders have discovered there are more paper companies and so have become more selective in trading.  Turning to its list of factors, the first item is the lessening of manufactured or imaginary trades or trades agreed beforehand.  Which have come to everyone's attention through increased complaints.  The impact of the new capital market law which criminalizes these wrong practices.  The second is exceptional "feverish"  trading in transport or logistic company  as shares as part of an organized propaganda and scheduled effort to to spread rumors.  Manipulated volumes and prices.

Not too far into the report and it's pretty clear that this is not your normal market analysis.

It only gets better.  Comments on those responsible for cheating numerous innocent traders.  Management from the companies themselves, media circulating lies - print, satellite television, internet sites (heavens an attack on bloggers!).   Than an absolutely blistering attack on the KSE.

Some discussion of the Commercial Bank of Kuwait 11 April Board meeting and the responsibility of directors under the title "Commissioning Not Entitling" (my loose translation).  Calling for independent investigations of board conduct at troubled companies to find out the real reasons for losses and the decline in asset values along with steps to recover funds if board members are guilty of wrongdoing.

The end of the article deals with a review of 2009 earnings predictions by 4 newspapers in Kuwait along with AlJoman's.  And some comments that so far (not all firms have reported results yet!) net income for the two year period 2008-2009 is approximately zero.

An interesting factoid - as of the date of AlJ's report only 25% of Kuwait's 333 companies had reported 1Q10 earnings.  One suspects the delay is not due to needing a lot of time to add up the profits.

White Knight for Shabka Holding: The Saudi Investor

If you don't recall the rather sad story of Shabka Holding, here's the earlier link.

Earlier this week, Shabkha held its annual general shareholders meeting.  There were reports in several Kuwaiti papers.  Let's go to the largest circulation paper in Kuwait (and a princely one at that) for the details. 

The meeting proceeded with 63% of shareholders present.  Not a hard trick since Nayef Abdul Aziz Abdullah Al-Enezi, Chairman and Managing Director, holds 40.65% and Dr. Badr Abid AlThafiri, CEO holds 12%.  Both bought sometime in early 2009 if I'm not mistaken.

To get an idea of the problems that Shabka faces, let's review some details provided by AlThafiri who spoke to reporters at the meeting. 

There is an ongoing dispute with International Leasing and Investment.  Shabka has asked the Islamic Development Bank (Jeddah) which holds shares in both Shabka and International Leasing (roughly 28% in the latter!) to mediate.  

The dispute relates to related party transactions in the amount of KD22 million which are in the form of "wakala investments".  In addition to a contract to buy 7% of the shares of Athman  (Athman Investments in which I believe International Leasing was and may still be a shareholder) which led to additional losses of KD19 million.  

As a side note, you'll recall that in late March AlEnezi accused International Leasing of selling assets to Shabka at above market prices.  The sales he asserted were not ratified by the shareholders annual general meeting but approved at the board level (which IL controlled).  His assertion is that if these contracts were unwound, Shabka's losses would be KD5 million less than current.  

Back to the article, he says that current losses are some 68% of total capital as of year end 2009 and that this is an improvement from 233% as of year end 2008.  Shabka's 2009 financials aren't posted on the KSE yet.  Its 31 December 2008 financials show negative equity of KD7 million - the 233%. That would make the losses roughly KD10 million at 2009 year end.

Back to the article, during 2008, the previous shareholders increased the capital in the company from KD5 million to KD15 million (this refers to the legal capital - par value times the number of shares outstanding).  Since the shares were offered at KD0.250 per share (a KD0.150 premium per share), the gross amount of the capital increase would appear to be some KD25 million - though surprisingly elsewhere in the article AlThafiri says the the share premium account only holds KD9.93 million - leaving roughly KD5 million not accounted for.  Since Shabka has not yet published its 2008 financial report, one cannot come to a firm conclusion with what happened.  In any case, AlThafiri says that once the new board took over, they discovered the firm's assets were KD400,000.  He attributes the difference to use by some members of the previous board to acquire control over Abraj.  (AA:  This could be AlAbraj Holdings, which by the way owns 39.3% of International Leasing.)  And that there was only KD7 in Shabka's accounts.  That's not a typo.  Seven dinars.

To deal with its problems, the shareholders agreed at the AGM to:

1. Use the KD9.93 in the Share Premium account to cover some of the losses. This and other amounts appear sufficient to cover the 2009 losses.
2. Increase paid in capital from KD15 million to KD50 million.  No discussion of the price of the offer.  Shabka's shares have a nominal value of KD0.100.
3. An unnamed Saudi investor is willing to step up for 70% of the capital. 

Two puzzling things from that latter point:

1. Who the investor is?
2. Why he is stepping up?  It's not as though Shabka has a lot to offer, except for its license.

One final point, as disclosed in its 30 June 2008 interim financials, IL bought 70% of Shabka during the first six months of 2008 for some KD32.4 million. During that same period it sold 15.1% of the company for KD23.2 million.  You can do the math.  A good return.  And I suppose a "wise" investment for someone.  And also as disclosed, was in the stages of selling the rest of its investment. Shabka traded as high as KD0.590 in the second half of 2008.  Its last trade was at KD0.044 on 31 March 2009 before it was suspended by the KSE for failure to provide financials.

Kuwait Stock Exchange Suspends Trading in 15 Additional Companies For Failure to Provide Financials

At 8:48 AM Kuwaiti time the KSE issued the below list of companies whose trading was suspended due to failure to provide financial statements for the period ending 31 December 2009.

While 21 companies appear in the list, 6 of them were previously suspended for failure to provide earlier financial statements.   That means an additional 15 companies have been suspended.

If and when these companies provide the missing financials to the KSE, their trading will be resumed.

In order the companies are:

1. AlAhlia Holding
2. AlBayt/Securities House
3. Industrial and Financial Investments Co.
4. International Investments Group
5. Aref Investment Group
6. The Investment Dar (previously suspended)
7. Aayan Leasing and Investment
8. Gulfinvest International
9. KFIC (Kuwait Company for Financing and Investment)
10. International Leasing and Investment (previously suspended)
11. National Real Estate Co (NREC)
12. Pearl Real Estate (Lu'lu)  (previously suspended)
13. Investors Group 
14. Grand Real Estate  
15. Safat Global (previously suspended)
16. Agility
17. The Sultan Center
18. Saftec
19. Villa Moda (previously suspended)
20. Shabka Holding Company (previously suspended)
21. UFIG (United Food Industries Group)

Using KSE definitions of the main economic sector of activity as per the company's stated purpose, of the suspended companies:

1. 10 are from the Investment Company Sector
2.   5 from the Real Estate Sector.

Though it's a reasonably good assumption that the problems at the other companies - save Agility - are probably largely related to securities or real estate investments.

[8:48:12]  ِ.وقف التداول باسهم شركات اعتبارا من اليوم ‏
يعلن سوق الكويت للاوراق المالية انه قد تم وقف التداول باسهم 21 شركة ‏
وهى الشركات التالية :‏
الشركة الاهلية القابضة (اهلية) ‏
شركة بيت الاوراق المالية (البيت)‏
شركة الاستثمارات الصناعية (ا صناعية) ‏
المجموعة الدولية للاستثمار(المجموعة د) ‏
شركة مجموعة عارف الاستثمارية ‏(عارف)‏
شركة الدار للاستثمار (الدار)(موقوفة) ‏
شركة اعيان للاجارة والاستثمار (اعيان) ‏
الشركة الخليجية الدولية للاستثمار (غلف انفست) ‏
الشركة الكويتية للتمويل والاستثمار (كفيك)‏
الشركة الدولية للاجارة والاستثمار(د للاجارة) (موقوفة) ‏
الشركة الوطنية العقارية (وطنية) ‏
شركة لؤلؤة الكويت العقارية (لؤلؤة) (موقوفة) ‏
شركة مجموعة المستثمرون القابضة (المستثمرون)‏
شركة المشروعات الكبرى العقارية (جراند)‏
شركة الصفاة العالمية القابضة ‏(صفاة عالمي)(موقوفة) ‏
شركة المخازن العمومية (اجيليتي) ‏
شركة مركز سلطان للمواد الغذائية (م سلطان) ‏
شركة الصفاة تك القابضة (صافتك)‏
شركة فيلا مودا لايف ستايل (فيلا مودا) (موقوفة) ‏
شركة الشبكة القابضة (الشبكة)(موقوفة  ) ‏
شركة المجموعة المتحدة للصناعات الغذائية (الغذائية) ‏
اعتبارا من اليوم الخميس الموافق 01-04-2010 ،وذلك لعدم تقديم ‏
البيانات المالية السنوية للسنة المالية المنتهية فى 31-12-2009 ،فى ‏
الموعد المحدد لذلك.‏

Kuwait Stock Exchange Suspended Companies - And Then There Were Six

As we close out the last day of 2009, here's the final list of companies suspended from trading by the KSE:

1. Lu'lu Real Estate Compay (Pearl Real Estate) - شركة لؤلؤة الكويت العقاريه (لؤلؤة)‏
2. Safat Global Holding - شركة الصفاة العالمية القابضة
   
3. Shabka Holding - شركة الشبكة القابضة
   
4. The Investment Dar - شركة الدار للاستثمار
5. International Leasing and Investment -الشركة الدولية للاجارة والاستثمار
   
6. Villa Moda - شركة فيلا مودا لايف ستايل

As before they are suspended for failure to provide financials.  With the use of  Western numbers in the press release, you can see which reports are missing. Safat and Shabka share the dubious distinction of also being suspended for failure to pay their 2009-2010 listing fees.

Arabic text of the KSE official announcement below.

[7:53:37]  ِ.الشركات الموقوفه عن التداول
يعلن سوق الكويت للأوراق الماليه بأنه تم وقف تداول اسهم بعض الشركات وفقا
لما يلي :-‏
اولا: الشركات التي لم تقدم بيانات 30-06-2009 و30-09-2009 :- ‏
شركة لؤلؤة الكويت العقاريه (لؤلؤة)‏
ثانيا:الشركات التي لم تقدم بيانات 31-03-2009 و30-06-2009 و30-09-2009:- ‏
شركة الصفاة العالمية القابضة(صفاة عالمي) ‏
شركة الشبكة القابضة (الشبكة) ‏
ثالثا: الشركات التي لم تقدم بيانات 31-12-2008 و31-03-2009 و30-06-2009 ‏
و30-09-2009 :- ‏
شركة الدار للاستثمار(الدار)‏
الشركة الدولية للاجارة والاستثمار (د للاجارة) ‏
شركة فيلا مودا لايف ستايل(فيلا مودا) ‏
رابعا: الشركات التي لم تسدد رسوم الاشتراك السنوي لعام 2009-2010 :-‏
ِ شركة الصفاة العالميه القابضه (صفاة عالمي) ‏
ِ شركة الشبكه القابضه (الشبكة) ‏

Safat Global Holding Kuwait

If you've been following the investment companies up in Kuwait (and who hasn't?), this name is familiar to you.  Last August the old board was removed and a new board elected by the shareholders.

On 30 September the new Chairman, Badr AlYahya, gave an interview to AlQabas in which he basically said that there was no substance to the company - no offices, no employees, no financial records, and perhaps no assets.

Safat also has been on the list of companies suspended from trading on the KSE due to failure to publish financials.  Both it and Shabka Holding  have not published any financial reports for 2009.  Both share the dubious distinction of being the only two firms also suspended for failure to pay their KSE listing fees.  (And for those who are keeping score, we're down to seven on the suspended list).

AlQabas published an interview with the Deputy Chairman, Ahmad S AlMutairi, in which he said that the company was preparing a formal legal complaint to the Public Prosecutor against the members of the former board of directors and companies they represented for an investigation in the cause for the disappearance of KD 6 million (US$21 million) in real estate assets.  AlMutairi noted the assets were in the audited 2007 financials but were not in the 2008.  (The 31 December 2008 financials about which there is currently some dispute show total assets of just short of KD 10 million).

He also said that the old Board had asked the MOIC to call for a shareholders general meeting and that they were ready to co-operate with the old board to recover the rights of the shareholders.

It's also expected that the meeting (which if I recall properly is scheduled for February) will vote on changing the auditors  and reducing the board to 3 members.

And You Thought You Had a Bad Day: Wait Till You Hear the MD at Shabka Holding Kuwait

Nayef AlEnizi who recently acquired a majority of Shabka's shares and is MD and Board Member described the company to AlQabas  using the phrase "la wujud laha nihaiyan".  "No existence to it in the final analysis".

If that wasn't enough:

1. The company has no office.
2. The new board can't locate records or financial statements.
3. The company doesn't have a finance director.
4. The new board isn't sure what the assets or liabilities are.  (See #2 above)
   
5. The Ministry of Commerce is delaying issuing certificates to the new board members,
   

And if that weren't enough, he expects that the company will lose the suit brought against it by International Leasing.

And I thought the chap at Safat Global had a sad story to tell.  This one tops Badr's by a kilometer or two.

As you recall, trading in Shabka shares is suspended for being late with its financials as well as not paying its KSE listing fees.

Kuwait Stock Exchange - 9 Suspended Companies - Length of Delays in Financials

You'll recall that earlier the KSE suspended 13 companies.  Here's the previous post.

Four have provided their financials:

1. Aref Investment Group (Investment Company) - See post on Aref's financials here.
   
2. Aayan Leasing and Investment Company (Investment Company)
3. Al-Madar Finance and Investment Company (Investment Company)
4. Safwan Trading and Contracting (Services Company)
   

And here for the earnings of Aayan, Al-Madar and Safwan.

Looking at a  KSE announcement from 19 November, we can analyze the remaining companies by the length of delay in their financials. (You can find the text - Arabic only - as described in the previous post above.  It's the 7:59:38 post on the 19th).

First, those only past due for their 30 September 2009 financials:

1. Industrial Investments Company (Investment Company)
2. Salbookh Trading Company (Industrial Company)
3. National Ranges Company (Services Company) a/k/a "AlMadayen"
   

Second, those past due for 30 June 2009 and 30 September 2009 financials:

1. Pearl of Kuwait Real Estate Company (Real Estate)  a/k/a Lu'lu

Third, for 31 March, 30 June and 30 September 2009:

1. Safat Global Holding (Real Estate)
2. Network Holding Company (Services Company)  a/k/a "Shabka".  Shabka is also suspended for failure to pay its listing fees on the KSE for 2009-2010.
   

Fourth, for 31 December 2008 and 31 March, 30 June and 30 September 2009:

1. The Investment Dar (Investment Company)
2. International Leasing and Investment Company (Investment Company)
3. Villa Moda Life Style (Services Company)
   

Company type corresponds to KSE classification.

Clearly, the longer a firm's financials are not provided the stronger the sign of financial distress.  As mentioned before, banks and investment companies' financials must be approved by the Central Bank of Kuwait.  When there is a delay in release of a financial report for one of these parties, it often signals that the CBK and the company are having a disagreement.  That is not a sign of financial strength as the CBK does not frivolously hold up finalization of interim or annual reports.

Kuwait Stock Exchange Suspends Trading of 13 Companies (6 Previously Suspended)

Last week the KSE warned 23 companies that failure to provide their 3Q09 financials to the Exchange  by 8:30 AM this morning would result in suspension of their trading.  See earlier Suq Al Mal post on that topic.

This morning at 8:44 AM local time, the KSE announced the suspension of trading of 13 companies.

As noted in my earlier post of the 23 companies so warned, 6 had already been suspended for failure to provide financials for previous periods.

The 13 suspended today include 6 previously suspended, so the incremental number of suspensions (in this announcement) is 7.  The KSE already suspended IFA and Watha'iq last Thursday.

New suspended companies:

1. Industrial Investments Company (Investment Company)
2. Aref Investment Group (Investment Company)
3. Aayan Leasing and Investment Company (Investment Company)
4. Al-Madar Finance and Investment Company (Investment Company)
5. Salbookh Trading Company (Industrial Company)
6. Safwan Trading and Contracting (Services Company)
7. National Ranges Company (Services Company) a/k/a "AlMadayen"
   

Previously suspended still suspended.

1. The Investment Dar (Investment Company)
2. International Leasing and Investment Company (Investment Company)
3. Pearl of Kuwait Real Estate Company (Real Estate)  a/k/a Lu'lu
   
4. Safat Global Holding (Real Estate)
5. Villa Moda Life Style (Services Company)
6. Network Holding Company (Services Company)  a/k/a "Shabka"
   

Company type corresponds to KSE classification.