Kuwait stock market sinks to 8 year low

Intensifying political stalemate in Kuwait triggered another sell-off on the country’s main index yesterday, dragging it down to its lowest level since August 2004. Most other Gulf bourses ended higher ahead of the weekend. Kuwait’s benchmark fell 1.9 percent to 5,658 points, falling below the previous eight-year low hit in August this year. “The political instability is directly impacting the short-term and long-term outlook for Kuwait,” Fouad Darwish, head of brokerage services at Global Investment House, told Reuters. “In the past, we had day traders who were willing to gamble on a quick resolution of the political scene. But unfortunately, the problem is becoming fiercer and the opposition is becoming more vocal.” Retail investor-dominated small-caps were hardest hit. Of the three most traded stocks, Gulf Investment House dropped 4.1 percent, Abyaar Real Estate fell 5.0 percent and Ithmaar Bank shed 5.0 percent. In the UAE, Dana Gas shares gained 2.4 percent, rising from Wednesday’s six-week low as bargain hunters returned. The stock accounted for more than half of shares changing hands on the Abu Dhabi bourse. After markets closed, the bourse said it would suspend Dana shares pending clarification on its Islamic bond. Abu Dhabi’s index ticked up 0.04 percent to close at a fresh 15-month high. Dubai’s heavyweights helped lift the benchmark, by 0.2 percent to 1,623 points, up for a second session in the last six. From Arab News