Kuwait share index tops 10,000 for first time

Kuwait's share index topped 10,000 points intraday yesterday for the first time, as investors bet on firm corporate earnings for this quarter against a solid economic backdrop thanks to record oil prices.

The Kuwait Stock Exchange price index, grouping about 150 mostly Kuwait companies, ended the session up 72.70 points, or 0.73 per cent, at 10,023.50. It danced around the psychological level minutes to the close before ending just off the 10,024.30 session high.

It is up 56 per cent year to date and is extending a bull run dating back to early 2001.

The rally accelerated in the run up to the spring 2003 US-led war in Iraq.

"Kuwait earnings are higher, the macro picture is quite good, businesses are doing well, price-earnings (ratios) are low, so that could lead one to say that the price index in Kuwait has the potential to move higher," said Mujib Moosa, senior analyst at Kuwait Financial Centre.

"We look at 10,000 as a psychological number," said Moosa. "People are also looking at 10,000 as regional benchmark, the Saudi index is near 15,000 and the Qatar index near 12,000, and now Kuwait is 10,000.

Among big gainers, KIPCO Asset Management rose 5.66 per cent at 560 fils.

The bourse said ahead of the opening that the central bank gave approval Monday to the firm to buy back up to 10 per cent of its shares for six months from September 17.

Global Investment House closed up 1.96 per cent at 2.080 dinars. The investment firm with over $5 billion in assets under management told Reuters on Monday it planned to expand investments in the Middle East and North Africa to take advantage of oil-driven excess liquidity in the region.

Kuwait is enjoying record liquidity as a result of high petroleum prices and the government is expected to log a budget surplus of over 5 billion dinars for the current fiscal year ending March 2006.