Kuwait leads GCC bourses higher

The Kuwait Stock Exchange posted a third week in a row of gains with the KSE index closing up 1.1% at 1,832.8 points, and now 7.2% up so far in 2002.

Brokers said that liquidity continued to flow into the KSE with expectations about strong results also boosting market sentiment. Mobile telecoms and banking stocks remained popular investments.

The position was slightly different in the UAE whose stock market also enjoyed a busy week. Here the property sector lost some ground while financial and Islamic shares were popular. Market sentiment was perhaps influenced by the highly successful new Islamic Financial Forum held at the start of the week. Dubai Islamic Bank was particularly in demand by investors, rising Dhs2.

Saudi Arabian shares joined in the bull-run to finish the week up 0.9% at 2,557.29, according to the Bakheet Financial Advisers' all-share index. Recent oil price gains have fuelled the appetite of Saudi investors for shares, noted BFA in its latest report. Again demand is concentrated in the financial blue chips and also cement.

Even Oman's beleaguered Muscat Securities Market jumped by 1.3% last week at 160.96. Traders said low rates on deposit accounts had finally persuaded investors to move into equities. Ironical enough in the same week that the US Federal Reserve switched its bias to neutral, signaling that rates may move up shortly.

Bahrain was the only loser among GCC bourses with losses posted by the Bahrain International Bank weighing on investor confidence. It closed the week down 0.4% at 1,792.86. Qatar's Doha all-shares index was up 1% at 1,669.23.