On Wednesday, August 15, the Kuwait Stock Exchange (KSE) ended the week 1.5 percent higher at 1,726 points. The index has risen an astonishing 28 percent since the beginning of the year, yet it is still 39 percent lower than its all-time high of November 1997, according to AFP news agency.
Gains were attributed to positive corporate results of listed companies for the first six months of the current year. Daily average trading reached $70 million in comparison to $42 million for the first half of 2001. The current weekly trading volume stands at more than four-fold last year’s figure of $16 million, though it is still almost half 1997’s average of $134 million.
The index has been on the rise for the past several months, following its sharp decline in January, when the index reached its lowest level in five years. Experts believe the positive trend has been the result of the government’s decision to implement a number of economic reforms, in addition to strong oil prices which accounts for the country’s biggest source of revenue for the budget.
The KSE is the second largest bourse in terms of capitalization in the Arab world, following Saudi Arabia. The market’s total capital value presently stands at approximately $27 billion, a rise of 30 percent since the beginning of the year. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
