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Business / Stock Market

Kuwait bourse resumes rally

Published: 17 May 2013 - 03:52 am | Last Updated: 01 Feb 2022 - 02:51 pm


Three men watch a screen at the Kuwait bourse. The bourse resumed a rally in heavy trading yesterday as upbeat expectations of an improving economy outweighed renewed political woes.

DUBAI: Kuwait’s bourse resumed a rally in heavy trading yesterday as upbeat expectations of an improving economy outweighed renewed political woes, while other regional markets were mixed. 

Kuwait’s benchmark climbed 1.1 percent, its fifth gain in six sessions. The index, up 33.2 percent year-to-date, has been buoyed by a turnaround in sentiment as a calmer political backdrop lifted sentiment and company earnings improved. 

Buyers returned after Wednesday’s 0.6 percent decline on the index. Some members of Kuwait’s cabinet offered to resign earlier this week but there was little reaction from investors; some are expecting a minor reshuffle of members. 

Interest from local and foreign investors has spiked in recent weeks, with May 9’s turnover the highest in 44 months at KD169m ($594.3m). The market traded KD89.7m yesterday.

“Retail and day trading clients managed to push enough momentum in the market to elevate the price index and daily traded value to levels we have not seen in three years,” said Fouad Darwish, head of brokerage at Global Investment House.    

Another big boost may come if the government-owned National Portfolio Fund, set up during the 2008 market crash to stabilise prices, begins buying in earnest.

“Many are awaiting the full implementation of the National Portfolio initiative and when it is enacted many of prices we are seeing today will be a discount,” Darwish added.

Elsewhere, Dubai’s bourse rose 0.4 percent, up for a fourth straight session but trading was choppy amid slight profit-taking. The index is up 41.5 percent year-to-date and the best performing equity market in the Arab region.

“For the last week and half we’ve seen a lot of interest from retails to put money to work,” said Amer Khan, fund manager, Shuaa Asset Management. “Normally this would suggest the rally is stretched but the high volumes mean there is a bit more to come.” 

He said that bluechip names are likely to see further gains as analysts price in further improvement in the banking and property sector. 

Real estate prices have jumped, recovering from a 2008 slump and banks have improved the quality of their loan books. 

Abu Dhabi’s benchmark was steady at a 54-month high. 

In Qatar, the measure came under pressure from profit-taking ahead of the weekend and slipped 0.2 percent. It hit a 27-month high on Tuesday as buying momentum from regional investors picked up in recent weeks, attracted by cheaper valuations compared to regional peers. 

In Egypt, the benchmark index slipped 0.5 percent, trading in a tight range as investors await catalysts. Investment firms were the  main drag. Reuters