Kuwait stock market drops 0.8 percent on week
The Kuwait Stock Exchange (KSE) lost 0.8 percent in the week closing Wednesday, October 3, taking the index below the 1,600-point psychological barrier. The KSE index closed at 1,597.7 points, up 18.5 percent on the year but still down 43.6 percent on its all-time high of November 1997.
The index fell below the 1,600 mark on Sunday after losing 12.6 points. The downward trend persisted Monday, with the loss of another 16.9 points as investors cautioned against any government interference in the market, insisting it would correct itself. The drop was attributed mainly to psychological factors.
On Tuesday the KSE closed 23.1 points higher, taking the index above 1,600, only to close below this figure again on Wednesday. The KSE is down 9.8 percent since the devastating September 11 terror attacks in the United States that left thousands dead.
Previously, the bourse had been booming, with the index rallying past 1,700 points for the first time since December 1998 after dropping to a five-year low in January. The rise was attributed to a number of government economic reform decisions and the strong price of oil, which supplies the emirate's budget with 90 percent of its revenue.
The KSE is the second largest stock exchange in the Arab world in terms of capitalization after Saudi Arabia's NCFEI index. ― (AFP, Kuwait City)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)