The Kuwait Stock Exchange (KSE) closed the week of Wednesday, October 31 up 0.5 percent at 1,659.7 points on what investors described as marginal gains in an atmosphere of prevailing uncertainty.
The KSE index, which is up 23.1 percent on the year, moved steadily throughout the week, given a boost on Tuesday by the Central Bank of Kuwait (CBK) decision to cut its discount rate by half a percentage point.
"The week has made marginal gains," said one investor. "But it's been quiet overall. The market was encouraged by the central bank lowering the discount rate and reducing the gap between the Kuwaiti Dinar and the dollar."
CBK cut its discount rate to 4.25 percent in the seventh cut this year. On Wednesday, however, the KSE index shed 7.8 points, which was attributed to uncertainty, both locally and internationally.
"There is still uncertainty. US stocks were down over the last two days and lack of Kuwaiti government moves toward reforms have added to the uncertainty. People are waiting for positive steps by the parliament and government," said the investor.
The KSE is still down 41.5 percent on its all-time high of November 1997 and 6.3 percent since the devastating September 11 terror attacks. 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)
