Kuwait bourse slips following gains
Kuwait’s stock market declined yesterday, pausing after recent gains ahead of the bourse joining the FTSE Russell emerging market index this week, which is expected to draw investment from passive funds.
Entry to the emerging market index will undertaken be in two phases, today and on December 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Kuwait’s main index closed 1.4 per cent down, pressured by telecoms and financial stocks.
Telecoms group Zain ended the day 2.5 per cent lower, Kuwait Finance House lost 2.5 per cent and National Bank of Kuwait slipped 2.4 per cent. Logistics company Agility dropped by 2 per cent.
The index has gained almost 11 per cent in the year to date. This quarter alone it has climbed by 8 per cent thanks to expected inflows ahead of the FTSE Russell inclusion.
Elsewhere, markets across the Middle East registered mixed results.
Egypt’s index, which plunged 3.8 per cent last Wednesday, added 1.3 per cent.
In Egypt, Orascom Investment Holdings soared by 9.9 per cent after announcing that it it had been granted an exemption from the United Nations to operate its Koryolink venture in North Korea. Orascom Construction also jumped by 9.9 per cent.
The Abu Dhabi Securities Exhange benchmark closed 0.2 per cent up, while the Dubai Financial Market declined by 0.1 per cent and the Qatari index was flat.
In Abu Dhabi, Union National Bank and Abu Dhabi Commercial Bank rose 0.6 per cent and 0.9 per cent respectively. The two banks are currently engaged in merger talks, along with unlisted Al Hilal Bank.
In Dubai, investment company Amanat Holding dropped 3.3 per cent, logistics company Aramex fell 1.5 per cent and blue-chip developer Emaar Properties declined 0.2 per cent.
In Qatar, the region’s biggest lender Qatar National Bank ended the day 0.7 per cent higher. Petrochemicals, metals and fertiliser producer Industries Qatar fell 0.7 per cent.
Saudi Arabia’s stock market was closed for the country’s national day.