Trading halted in Kuwait's Gulf Bank stocks after investors balk on covering losses

Kuwait City: The Kuwait Stock Exchange says it has temporarily halted trading in Gulf Bank's shares after investors refused to cover losses sustained in derivatives trading.

The exchange said in a statement on its website on Sunday that the move was ordered by Kuwait's Central Bank and that the government will propose an urgent bill for guaranteeing deposits in the country's banks.

The statement says the financial standing of Gulf Bank won't be affected by the losses. The bank is one of the country's largest financial institutions.

The Kuwaiti bourse is down about 3 per cent by midmorning, continuing a slide that has panicked investors in this tiny, oil-rich country.