Kuwait share index sets new record

The share index of the Arab world's No. 2 bourse surged today to a fresh record high that left it closing above 7,700 for the first time ever, partly on favorable economic news and announcements of fresh deals.

The Kuwait Stock Exchange index of 130 companies closed 110 points higher, or 1.45 percent, at 7,706.30.

The recent surge is pegged to factors such as solid economic fundamentals on a renewed surge in high oil prices, investor bets on strong first quarter profits and expectations that more Iraq-related or local deals will be won by Kuwaiti firms.

A new report published by local newspapers today painted a robust picture for the economy of tiny Kuwait, which controls nearly a tenth of global petroleum reserves.

The Gulf Studies Center said in the report that Kuwait achieved the highest economic growth rate among its Gulf Arab peers in 2004 at a record 10.1 percent.

Kuwait's gross domestic product (GDP) was seen rising to 47.9 billion dinars ($163.8 billion) in 2005 from 45.9 billion dinars last year, the report said, noting the country will also be able to cut inflation to 1.6 percent this year from 1.7 percent in the previous year.