KAMCO an­nounces its fi­nan­cial re­sults for Q3 2015

Kuwait Times - - BUSINESS -

KAMCO In­vest­ment Com­pany, a lead­ing in­vest­ment com­pany with one of the largest AUMs in the re­gion and win­ner of the pres­ti­gious Kuwait As­set Man­ager of the Year Award 2015, an­nounced its fi­nan­cial re­sults for the nine-month pe­riod ended Septem­ber 30, 2015.

The Com­pany recorded a loss of KD 736 thou­sand with earn­ings-per-share (EPS) of -3.09 fils. How­ever, de­spite the stressed eco­nomic en­vi­ron­ment, KAMCO’s fee in­come stood at KD 3.6 mil­lion (YTD nine months 2014 - KD 3.7 mil­lion).

Faisal Sarkhou, Chief Ex­ec­u­tive Of­fi­cer of KAMCO said, “Op­er­a­tionally and de­spite the se­vere eq­uity mar­ket fall im­pact on prof­itabil­ity, KAMCO con­tin­ued to main­tain its As­sets un­der Man­age­ment at KD 3.3 bil­lion and to grow in­ter­est and sub­scrip­tions in its man­aged funds and re­cently launched prod­ucts and ser­vices. In ad­di­tion and de­spite the poor eco­nomic con­di­tions, the in­vest­ment bank­ing team con­tin­ued its ef­forts in un­der­tak­ing key an­nounced trans­ac­tions in the mar­ket.”

Sarkhou added, “KAMCO’s man­age­ment team be­lieves that with oil prices flat­ten­ing-out and ma­jor risks be­ing priced-in, the fu­ture should be more promis­ing. Pos­i­tive in­di­ca­tors go­ing for­ward in­clude ris­ing oil de­mand in the US and Europe, an ex­tended quan­ti­ta­tive eas­ing pro­gram in EU and a sta­bi­liz­ing Chi­nese econ­omy. In ad­di­tion, we ex­pect to see an in­crease in bonds and debt in­stru­ment is­suances led by var­i­ous gov­ern­ment and fi­nan­cial in­sti­tu­tions amid an ex­pected ris­ing in­ter­est rate en­vi­ron­ment. Once the sen­ti­ments turn pos­i­tive, we ex­pect ad­di­tional flows to cap­i­tal mar­kets.”

De­cline in per­for­mance

The losses in the third quar­ter are at­trib­uted pri­mar­ily to the sig­nif­i­cant de­cline in lo­cal, re­gional and In­ter­na­tional eq­uity mar­kets on the back of stressed in­ter­na­tional and re­gional geo-po­lit­i­cal en­vi­ron­ment, the fall in oil prices and weak eco­nomic cues that em­anated from China af­ter the Yuan devaluation. Stock mar­ket sen­ti­ments re­mained ex­tremely low as seen in the de­cline recorded by all of the re­gional in­dices tak­ing cues from the de­cline in oil prices, par­tic­u­larly dur­ing the third quar­ter. The in­vestors re­mained in the ‘wait and watch’ mode as seen from the de­cline in trad­ing ac­tiv­ity and re­duced flow in cap­i­tal mar­kets. Dur­ing the first nine months of the year, the KSE Weighted and KSE-15 in­dices fell al­most by 12 per­cent, MSCI GCC In­dex fell by 10 per­cent whereas S&P 500 de­clined by al­most 7 per­cent. Mean­while, oil prices plunged dur­ing Q3-15 af­ter show­ing some im­prove­ment dur­ing the 1H-15. OPEC oil de­clined by 26 per­cent dur­ing Q3-15 re­sult­ing in a YTD-15 de­cline of 16.2 per­cent.

KAMCO In­vest­ment Com­pany is a premier in­vest­ment com­pany based in Kuwait and is reg­u­lated by the Cap­i­tal Mar­kets Author­ity with one of the largest pri­vate sec­tor AUMs in the re­gion.

Es­tab­lished in 1998 and listed on the Kuwait Stock Ex­change (KSE) in 2003, KAMCO is a sub­sidiary of United Gulf Bank (UGB) and is the as­set man­age­ment and in­vest­ment bank­ing arm of Kuwait Projects Hold­ing Com­pany (KIPCO).

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