Global trims its losses to scale the heights
Global Investment House headed for its highest one-day price increase in at least eight years after the Kuwaiti investment bank said its second-quarter loss narrowed as interest expenses and operating costs declined.
Net loss in the second quarter was 16.7 million dinars, compared with 20.3m dinars in the same period last year, according to a regulatory filing to the Kuwait Stock Exchange.
Global shares rose 13.5 per cent to 21 fils, heading for the biggest one-day jump since at least June 2003, lifting Kuwait's benchmark stock index up 0.2 per cent to 5,846.40 points.
The company recorded principal investment losses of 28.2m dinars in the first half, largely because of 6.8m dinars in losses from the "share of results of associates" and the effects of political unrest on regional equity markets.
The bank's asset management business remained resilient, with 1.2 billion dinars under management. Several funds managed by Global outperformed their respective indexes and peers. Standard and Poor's Fund Services assigned an "A" rating to Global Saudi Equity Fund.
Global reached an accord with 53 creditors in December 2009 to alter debt payments as part of a US$1.73bn debt restructuring. The company said it repaid $19.7m in principal in the first half of the year, bringing total repayments since the accord to $198m, according to the statement.
Majority lenders last month approved an amendment to the facilities agreement to waive until next March 31 a condition that might have restricted any negotiations for the rescheduling or restructuring of the group's indebtedness.
In April, Global said a Dubai court had ruled in its favour in a $250m dispute with National Bank of Umm Al Qaiwain. The bank was ordered to pay the amount plus interest of $54.6m, Global said. The execution awaits a final ruling of Dubai's Court of Cassation.
Published: August 17, 2011 04:00 AM