Arabian Gulf Shares Advance, Led by Kuwait Finance House

Sabic, the largest company in the Middle East by market value, rose for a fourth time this week after its chief executive officer said petrochemical prices have started to improve. Kuwait Finance House, the state’s largest Islamic bank, advanced for the first time in three days after Al-Watan reported a Kuwaiti government fund will start buying shares after next week’s holiday. Qatar Real Estate Investment Co. climbed the most in two weeks after it got a loan to fund projects.

Saudi Arabia’s Tadawul All Share Index increased 1.5 per cent to 4,654.88, bringing the gain for the week to 5.2 per cent. The Kuwait Stock Exchange Index added 1.2 per cent. The measure has lost 29 per cent this year. “Sentiments are improving as the government gets ready to intervene,” Faisal Hasan, head of research at Global Investment House KSCC, said in an interview from Kuwait. “There is also a clear mismatch between the decline in market capitalisation and the decline in the profitability of companies in the Gulf region. That provides opportunities in this market.”

A Kuwaiti government fund to shore up the stock exchange will start buying stocks on the local bourse after the Eid Al Adha holiday, Al Watan reported, citing Finance Minister Mustafa Al Shimali.