DUBAI: Kuwait’s index claimed a fresh five-week high on Thursday as waning dissent in the country’s parliament boosted sentiment and drew investors back to the depressed market.

Abu Dhabi snapped a two-day losing as property and the lesser banking names bounced back, but Dubai fell slightly. Other Gulf Arab bourses were shut for the Islamic New Year.

The Kuwait benchmark is down 8.7 percent this year, but some analysts now say it could end the year in the green if buying momentum continues.

On Thursday, Kuwait’s interior minister Sheikh Jaber Khaled Al-Sabah survived a no-confidence vote in Parliament, while the day before Prime Minister Sheikh Nasser Al-Mohammad Al-Sabah also overcame a challenge from dissident MPs after he was accused of financial irregularities.

More than 721 million shares changed hands, not far below the previous day’s six-month high, as the index climbed 1.3 percent to its highest finish since Nov. 11.

“I’m a trader, so what I look for is volume and I’ve got a big smile on my face right now,” said a Kuwait-based broker who asked not to be identified.

“The market is continuing to bounce from yesterday’s news and is likely to move upward — the smaller caps are the focus because they’re the stocks that could double or triple in volume.”

These stocks, such as Hits Telecom and Al Deera Holding, are low-priced and their small market capitalization means they are easy to move, making them a magnet for speculators. There is little activity among the bluechips, with most unchanged, although Kuwait Finance House adds 1.8 percent.

“There has been good news from the parliament and sentiment is positive,” said Ammar Hajeyah, Manager, MENA Asset Management, Global Investment House. “There’s a very good chance for the market to build a new floor.”

Dubai’s index faltered for the second session in three, with investors showing little enthusiasm for risking more money until fresh news on Dubai World’s restructuring emerges.

“A lot of people bought early, expecting the market to follow the same pattern as yesterday, but there’s not the same buying power today,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

The benchmark falls 0.6 percent to 1,879 points as volumes slipped to a December low.

“I don’t see 2,000 points being broken in the next week and a half. For the last four to five years, the Christmas period has usually been negative for UAE markets and I don’t think this year will be any different,” said Wakeman.

“The market is now getting toward pre-debt crisis levels, which is a key resistance.”