DUBAI: Kuwait’s bourse rose to a fresh 15-week high yesterday on talk of state-linked buying and on hopes the political deadlock in the Gulf state may soon reach a resolution, while other Gulf markets finished mixed.

Large-cap stocks rose in heavy trading. Telecom operator Zain climbed 1.4 percent, Kuwait Finance House gained 2.7 percent and Gulf Bank added 1.2 percent.

Market sentiment lifted this week on talk the Kuwait government institutions are buying bluechip stocks, helping support the market which is up 5.5 percent from August’s eight-year low.

Trading volumes surged to 525 million shares, the highest daily count since May 8. The index rose 0.8 percent to 5,991 points, its highest close since June 12.

Kuwait’s Finance Minister Nayef Al-Hajraf appeared to confirm state intervention in the market.

“Everyone sensed National Portfolio activity in the Kuwait Stock Exchange whose role was to capture good investment opportunities in bourse,” Hajraf was quoted as saying on Kuwaiti state news agency this week.

“The market (Kuwait) broke the previous top of 5,920, which was a major resistance both for the short and for the medium time frame,” said Zeki Muderrisoglu, fund manager and senior technical analyst at National Bank of Abu Dhabi’s asset management division.

“So far, it looks like a healthy uptrend especially if it manages to stay above 5,920. If the uptrend is sustained, next possible targets are at 6,020, 6,120 and 6,430.”

Also boosting market sentiment are signals the political situation in Kuwait is moving toward resolution. This is taken as a good sign by investors, who are waiting for economic development projects to move forward.

Kuwait will not try to convene parliament again and will refer the country’s political standoff to its ruler, assembly speaker Jassim Al-Kharafi said.

In the UAE, markets rebounded as bargain hunters stepped in, but these were lower for the week.

Dubai’s index climbed 0.4 percent, rising from a two-week low, and losing 2.2 percent since last Thursday.

Drake & Scull, the top traded stock on the index, gained 1.2 percent, Emaar Properties ended flat and courier firm Aramex climbed 1.5 percent.

Gulf markets lost ground this week as global growth concerns spooked local investors.

“There are signs of economic recovery in the UAE, but the medium-term outlook globally is uncertain,” said Ali Adou, portfolio manager at The National Investor. “There are a lot of unsolved issues in Europe, US and China and governments are trying (with stimulus measures) but these are short-term remedies and not a fix for the underlying problem.”

Abu Dhabi’s index gained 0.2 percent, also easing away from a two-week low.

Elsewhere, Doha’s benchmark lost 0.1 percent to close at 8,494 points. The market is down 1.8 percent from Sept 17’s four-month peak as investors book gains ahead of third-quarter earnings.

“The index faced some resistance at 8,650 and is falling toward the next support of 8,450,” said Mohabeldeen Agena, head of technical analysis at Cairo’s Beltone Financial. “Traders are advised to continue taking profits. We are expecting the bears to continue pushing the level down toward 8,350.”

Qatar Electricity and Water slipped 0.2 percent, Doha Bank shed 1.4 percent and Barwa Real Estate declined 1 percent.