Trading in Agility was halted on Sunday after a sharp rise, and a source said the price may have been wrongly calculated in the wake of a dividend payment and capital increase.
Shares in the Gulf’s biggest logistics provider by market value last traded 4.71% higher at 890 fils, despite the firm having earlier reported a 10% decline in first quarter net profit.
The Kuwait bourse and Agility both declined to give official comment.
The stock market had said in a statement before markets opened that Agility’s stock would start trading ex-dividend following its annual shareholder meeting last Tuesday, the last trading day before the Gulf Arab state announced three days mourning due to the death of an ex-ruler.
A source familiar with the situation said the bourse may have calculated the stock price incorrectly after deducting the dividend as well as a capital increase not yet approved.
“The stock was supposed to be trading at 950 fils, but the bourse deducted both the dividends and capital increase starting at 850 fils,” said the source. “People were buying in the stock at 850 fils, knowing the real price was 950 fils.”
Agility plans to increase its share capital by 25% selling shares for 450 fils each to existing investors, it said last month. It paid a cash dividend of 80 fils each and a 10% bonus share issue for 2007.
The source, who declined to be identified, said the price for the capital increase should not have been deducted from Sunday’s stock price as it still needs government approval.
Agility shareholders also still have to approve the plans at an extraordinary shareholder meeting later this year.
Earlier, a trader said the stock may have been halted to clarify a report in a national newspaper. He gave no details.
Most newspapers monitored by newswire Reuters only carried a story about Agility’s first-quarter results. (Reuters)
Follow us on
