Kuwaiti shares fall 1.7 percent on shaken confidence
The Kuwait Stock Exchange (KSE) crashed to an eight-week low losing 1.7 per cent on the week ending yesterday on shaken investor confidence, brokers said.
The KSE index closed at 1,403.1 points, a loss of 41 points or 2.8 per cent since the beginning of October.
Brokers said the market, which has been affected by the deadly clashes between Israel and the Palestinians since late September, is also facing a depressed level of confidence over lack of implementing reforms.
Confidence levels on the market had been boosted over the past months by high oil prices, the settlement of billions of dollars of bad debt and the introduction of regulations allowing foreigners to own stocks and trade on the bourse. “But investors are greatly disappointed. Nothing of the promised reforms has been implemented,” a broker said.
“Dealers had great expectations on the law allowing foreigners to trade and own stocks. But nothing has happened so far and we have seen no foreigners,” the broker added.
He said that a number of blue chips, which have so far withstood the decline, dropped on Wednesday, led by the emirate’s leading bank, the National Bank of Kuwait, and the Mobile Telecommunications Company.
Some 87 companies with market capitalization of $21 billion are listed on the KSE, the second largest bourse in the Arab World after the NCFEI in Saudi Arabia. – (AFP)
© Agence France Presse 2000