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Kuwait property firms lost KD 180 mln in 2011 - report

KUWAIT, Jan 6 (KUNA) -- Real estate companies registered with Kuwait Stock Exchange (KSE) lost KD 180 million out of their values in 2011, according to a recent report.
Some 30 shares, or 77 percent, out of a total of 39 property shares listed at the KSE plummeted last year, recording mixed price losses between 2 and 47 percent of their market prices, showed the report, released by Coldwell Bank-Kuwait here on Friday.
Only seven property shares made profits last year, it said. Three falling shares incurred losses exceeding 40 percent, while one share remained unchanged and one share was out of trading in 2011, the report added.
The capital value of total listed shares dipped by 17 percent; having hit KD 28.55 billion by the end of 2011, down KD 5.93 billion over 2010's KD 34.48 billion, it said.
The property sector in the KSE dropped in value to KD 1.7 billion from KD 1.
88 billion, making up three percent of the market's total losses.
The results came due to direct connection between real estate and investment sectors, the report indicated.
But, the property sector retained its position as one of the best sectors in the bourse in terms of performance. Services and banks plummeted KD 2.8 billion and KD 1 billion in 2011 respectively, the report said.
However, the government is seeking to create a state of optimism at the real estate market by supporting Kuwaiti companies through its national development drive, which is expected to bring a favorable impact on the performance of property shares at the bourse this year thanks to the remarkable activity of real estate companies' operations at the advent of the season of exhibitions and marketing, the report concluded. (end) fnk.rda.mt KUNA 061855 Jan 12NNNN