DUBAI: Kuwait’s bourse dropped to a three-week low yesterday after a protest rally against possible changes to the country’s election law that prompted an investor sell-off, while most other Gulf markets closed higher.
Kuwait’s index fell 0.9 percent to its lowest level since Sept. 25.
“All this negative sentiment is spilling over to the market — there is a lot of retail selling and high net worth individuals are sitting out,” said a Kuwait-based trader.
“The market just started to gain some momentum and something like this (protests) is, turns it all around. We’re likely to see a couple more days of this selling.”
Stocks were lower across sectors.
Large-caps, National Bank of Kuwait slipped 1 percent and telecom Zain declined 1.4 percent.
In the UAE, Dubai’s index rallied to a 24-week closing high and the bourse’s own stock also gained, supported by upbeat sentiment in anticipation of quarterly earnings.
The emirate’s index climbed 0.6 percent to its highest close since April 26. Shares in Dubai Financial Market, the Gulf’s only listed-exchange, rose 0.9 percent.
Trading volumes in the third quarter rose to 5.7 billion shares from 3.5 billion in the same period a year earlier, an indicator of earnings growth for the exchange.
Real estate and related stocks rose with Emaar Properties up 0.5 percent, mortgage lender Tamweel gaining 2.2 percent and engineering firm Drake & Scull climbing 0.1 percent.
“UAE indices have had a good run, driven by an improving economic backdrop and a recovery in selective demand for real estate properties, as evidenced by Emaar’s recent sales and project announcements,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital.
Elsewhere, Qatar’s index gained 0.4 percent to its highest close since Sept. 24.
Qatar Electricity and Water and Industries Qatar rose 1.1 and 1.9 percent respectively.
Kuwait drops to 3-week low; other Gulf markets rise
