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Kuwait shares dive over political disputes

KUWAIT CITY - Kuwaiti shares shed two percent on Tuesday to their lowest close in more than two months, dragged down by domestic political disputes, regional tensions and profit-taking, analysts said.

The Kuwait Stock Exchange index finished down 12,593.80 points from 12,850.00 points on Monday and has now dropped 3.8 percent from last week’s close of 13,096.40 points.

The index, which ended last year down 12 percent due to a long correction, is still 25.1 percent above its 2006 close of 10,067.40 points, but down 4.4 percent on its all-time high of 13,175.20 points set on October 21.

“Three factors have affected investor sentiment; domestic political fighting between MPs and the government, new Iranian threats to launch suicide attacks in the Gulf and profit-taking sales,” economist Ali al-Nimesh told AFP.

A top general in Iran’s Revolutionary Guards warned on Monday that his forces would carry out suicide attacks in neighbouring Gulf states if the United States attacked the Islamic republic.

The KSE lists 192 Kuwaiti and foreign firms and has a capitalisation of about 215 billion dollars, making it the second largest Arab bourse after the Saudi market.