Kuwait positive ahead of FTSE entry

Kuwait’s stock market closed on a positive note on Thursday on expectations of passive fund inflows when it partly joins the FTSE Russell emerging market index on Monday, while other markets were mixed.

Kuwait’s blue chip index rose 0.8 per cent to 5,363 points, trimming its earlier gains that reached 1.1 per cent.

Telecom operator Zain rose 1.3 per cent, Kuwait Finance House was up 2.4 per cent and Boubyan Bank 3 per cent.

The country will join the emerging market index in two 50 per cent phases, on September 24 and December 24, and Kuwaiti stocks in the index can expect inflows of passive funds. Arqaam Capital estimates the inflows in the two phases combined at $1 billion.

In Saudi Arabia, the main index rose 0.5 per cent to 7,768 points, its third straight increase, backed by gains in blue chips. Heavyweight Al Rajhi Bank and petrochemical giant Sabic jumped 1.7 per cent and 2.5 per cent, respectively.

In Dubai, the index rose 0.9 per cent to 2,764 points with 26 advancing stocks and six decliners. Dubai Islamic Bank rose 1.5 per cent and Emirates NBD added 1.1 per cent.

Abu Dhabi closed flat amid weak trading at 4,883 points. Abu Dhabi National Hotels put on 5.5 per cent, Abu Dhabi Islamic Bank gained 0.2 per cent and Al Qudra Holding lost 4.7 per cent.

Egypt’s stock market closed flat at 14,083 points, following Wednesday’s 3.8 per cent plunge to its lowest close this year as liquidity tightened. In Oman the index rose 0.2 percent to 4,495 points.

In Bahrain the index was flat at 1,340 points. In Qatar the index lost 0.4 per cent at 9,766 points. Oil prices steadied on Thursday but the market remained bullish after news of another fall in US crude inventories and on signs that Opec may not raise production enough to compensate for the loss of Iranian exports hit by US sanctions.

Brent crude oil was unchanged at $79.40 a barrel by 09.10 GMT, stabilising a little below the $80 mark. US light crude oil was 40 cents higher at $71.52 after rising nearly 2 per cent on Wednesday.

The North Sea benchmark has been trading below $80 for the past week after conflicting reports of the market views of Saudi Arabia, the biggest producer in Opec.