Political tensions affect performance of Kuwait Stock Exchange
Some observers and experts in Kuwait are expecting additional regression in Kuwait Stock Exchange on the background of the Prime Minister Sheikh Nasser Mohammed Al-Sabah's interrogation and the ongoing political tensions.
On Thursday, Kuwait Stock Exchange index has closed at 6338.7 point, with a regression of 35.4 point from compared to the previous week.
The Gulf country is witnessing political unrest on the background of the Prime Minister's interrogation, and his deputy Sheikh Ahmed Al-Fahd Al-Sabah by members of the parliament.
Rumors were spread Wednesday about Sheikh Ahmed Al-Fahd's resignation due to what it was said to be disputes between leading members of the Kuwaiti government.
Sheikh Ahmed is responsible for the implementation of the governmental development plan that includes projects to the costs of 30 billion Kuwaiti dinars (USD 109 billion).
Ahmad Al-Duwaisan, Manager of Al Rubaeyah Brokerage Company said: "There is nothing new, the same drawbacks are lasting, but they intensified. Confidence level is still going down".
He highlighted the permanent tension between the government and the National Assembly (the parliament) as a negative factor affecting the performance of the Exchange.
Mohammad Al-Tarrah, President of the Kuwaiti Financial Market Association, said investors now afraid to enter the exchange and believe the real estate sector is better than the exchange.
Al-Tarrah noted that the tensions between the legislative and the executive authorities have worked against the country's development and thus the Exchange's performance.
Around five thousand Kuwaitis, including a delegate from Kuwait Lawyers Society on June 3 took part in a demonstration held outside the parliament house under the title of 'For the Sake of Kuwait'. Demonstrators urged the PM and his deputy, Sheikh Ahmed Al-Fahad to quit their posts. They also urged HH the Emir to dismiss both the PM and his cabinet members.
- Tourism is the real target of the Tunisia attacks: industry set to suffer
- FIFA scandal probe: No deaths in 2022 World Cup construction, Qatar says
- The UAE harnesses the power of celebrity endorsements
- Gazans reach beyond Israeli blockade through start-up
- France is playing a risky dating game in the Gulf: experts