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Kuwait’s main equities index rebounded in the first day of trade since the end of a mourning period following the death of the country’s ruler. Most other markets in the Middle East declined.
The Boursa Kuwait Premier Market Index advanced as much as 3.2%, with National Bank of Kuwait, Kuwait Finance House and Ahli United Bank rising more than 3.5% each.
The index recovered from a slump in the four sessions through Sept. 29, when Sheikh Sabah Al-Ahmed passed away. The emir was succeeded by Crown Prince Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, 83, a half brother who has served as interior minister and deputy chief of the national guard. Over the weekend, the central bank reiterated its commitment to maintaining the Kuwaiti dinar exchange rate.
Sunday’s gains reflect “the political stability and the smooth transition after the sad demise of the Emir of Kuwait,” said Junaid Ansari, the vice president of investment strategy and research at Kamco Investment Co. in Kuwait City.
Other equity indexes in the region, including those in Dubai, Riyadh and Doha, tracked the losses in developing countries late last week. Equities in emerging markets declined on Friday after U.S. President Donald Trump tested positive for the coronavirus and concern grew that U.S. lawmakers will fail to agree on their next stimulus package.
MIDDLE EASTERN MARKETS:
- Kuwait’s main index trims increase to 3.1% as of 10:28am local time
- Saudi Arabia’s Tadawul All Share Index falls 0.2%
- Almarai climbs 0.6% after reporting net profit for the third quarter of SAR621.5m, 6.9% higher than the previous year
- Saudi Arabia’s fiscal outlook suggests no more Eurobond issuance in 2020, according to Morgan Stanley
- Dubai’s DFM General Index declines 0.9%
- Depa Plc, the interior contractor that fitted out the world’s tallest tower in Dubai, said it’s owed 82 million dirhams ($22 million) by Arabtec Holding PJSC.
UAE banks could start building provisions for Arabtec and other construction exposures, which could trigger additional profitability pressure in 2H20, CI Capital analyst Sara Boutros writes in a note
- “The fall of Arabtec, particularly given its political backing, sends an alarming signal on the outlook of the construction sector in the UAE”