I'm assuming these two items about Al Madina for Finance & Investment (ALMADINA) are connected. Might explain why their shares have been increasing on decent volumes recently. They only just listed on DFM, and unusually for a Kuwait company with a secondary listing, are trading in noticeable volumes - more than some of the "actively traded stocks" on some days.
ALMADINA traded 1 million shares on DFM yesterday (19 Sep 2007). Looks like it's today (20 Sept 2007) that trading is suspended. That's not clear from DFM disclosure on DFM1 site, there is a link (in Arabic) on the DFM2 site.
19/09/2007 AL MADINA: Trading suspended on companys shares until a deal disclosed
Reuters 19 Sep 2007 wrote:
HITS Telecom Africa gets $80m from Al Madina
The African unit of Saudi Arabia's HITS Telecom has drawn an $80 million placement to raise its paid-up capital to $300 million, the company said on Wednesday.
Kuwait's Al Madina Finance and Investment Co (ALMADINA) signed an agreement with Hits Africa to pump $80 million into the company, HITS said in a statement. Ektitab Holdings and HITS Saudi Arabia are the other large investors in the company, the statement said.
HITS (House of Integrated Technologies and Systems) said in June it planned to sell a stake in its African subsidiary this year to raise part of the $1 billion it needs to fund expansion in Africa.
Hitch? Or HITS? I assume this disclosure doesn't tell us anything more than what Reuters already said the day before.
It seems odd that trading in Al Madina Finance (ALMADINA) shares was suspended. I've rarely seen any other shares suspended pending an announcement on the DFM. Usually if there's significant news on the way, you'll know because the share price shows a big move on heavy trading beforehand as all the insiders take up their positions. And anyway, this news was a day old at least by the time it got to the DFM website.
Is it possible DFM were laying down the law on disclosures by picking on a newly listed company? If that's the case, then we'll look forward to seeing DFM suspend trading in stocks like Emaar Properties (EMAAR) next time they're slow with information. That should give the markets a jolt, and stir up companies to be more conscientious with disclosures.
It looks like Al Madina trading got underway again at about 1200, and in 1 hour of trading they managed to do a fairly impressive AED 21m of turnover - well in excess of the usual turnover for Kuwait stocks listed on the DFM. Price barely moved though, down 5 fils to close at 10.65 but average for the day was 10.85, or 15 fils up on previous close of 10.70 dhs.
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