Kuwait extends rally into 18th day

Kuwait stocks, the world’s best performers this year, extended a rally to an 18th day, the longest winning streak in more than a decade, as the country moved a step closer to a debut sale of dollar bonds.

Gulf markets showed no impact from ban by the United States on immigration from seven mainly Muslim countries.

The Kuwait Stock Exchange Index advanced 1.3 per cent to 6,943.24 on Sunday, the highest level since November 2014. The Bahrain Bourse All Share Index finished at the strongest level since 2015 and Oman’s MSM30 Index added 0.2 per cent.

Kuwait picked six banks to advise on its first international debt sale as the Opec member shores up its public finances after the slump in oil prices.

Last week’s selection of bond sale managers “is probably having the biggest impact in helping continue the market’s rally, in addition to the positive outlook of National Bank of Kuwait”, said Hasnain ­Malik, the Dubai-based head of equity research at Exotix Partners.

National Bank, the country’s biggest lender, last week reported profit for last year that beat estimates.

“Investors are expecting the bonds to help relieve liquidity pressures that have built up in the banking system,” Mr Malik said. “Whether there is any fundamental, lasting improvement in Kuwait’s growth outlook is a different matter.”

In Abu Dhabi, the benchmark index fell 0.8 per cent, led by property companies such as Eshraq, Aldar and RAK Properties.

International Fish Farming plunged its 10 per cent daily limit to Dh2.92. It soared from Dh1.90 at the end of last month to a peak of Dh4.65.

* Bloomberg and Reuters

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