Kuwait market closes lower after gov't walkout

SHARES LATEST: Kuwait's benchmark slipped in trading after the government resigned on Tuesday. (Getty Images)

Kuwait's benchmark closed down after the government resigned on Tuesday, although shares reversed some of the earlier losses.

National Bank of Kuwait and Ahli United Bank led declines, falling 1.37 percent and 4.55 percent respectively as the index closed down 0.79 percent to 8,615 points.

"The market is weak, there is no trust, especially with the political developments yesterday," said Naser Al Nafisi, general manager at Al Joman Center for Economic Consultancy. "It will have some impact on the stock exchange."

The government resigned after tensions with parliament over a request by three legislators to question the prime minister over the visit of an Iranian Shi'ite cleric, accused of offending Sunni Muslims.

Kuwait's emir will not decide immediately whether to accept or reject the resignation, the state news agency said on Tuesday.

"Everyone is waiting on the state fund to buy into the market next week," Al Nafisi said.

Arabtec shares closed almost 15 percent up for a second day after it said on Tuesday it would raise its capital through a bonus share issue, lifting Dubai's main index, while Abu Dhabi slipped on thin volumes.

Arabtec ended 14.79 percent up at 3.88 dirhams helping reverse early declines on the benchmark. The index closed 0.53 percent to 1,872 points.

In Abu Dhabi, thin volumes ahead of the holiday season helped push the index 1.65 percent lower to 2,685 points.

Emirates Telecommunications Corp. (Etisalat) and First Gulf Bank weighed, closing 2.81 percent and 9.93 percent lower respectively.

Bahrain's index finished down more than 1.76 percent to 1,913 points, led by Gulf Finance House, which fell 3.42 percent.

Saudi Arabian shares fell lower as oil prices hover around $50 and negative investor sentiment continues to sway the banking sector.

The index closed 1.47 percent lower at 4,424 points. Samba Financial Group and Riyad Bank led declines falling 5.49 percent and 6.09 percent.

Shares of Qatar Islamic Bank led marginal gains in Qatar after the country's second largest lender said on Tuesday it planned to buy back 10 percent of its shares.

The stock, down almost 37 percent this year, jumped six percent as the index rose 0.75 percent to 5,579 points.

Bahrain's index was unchanged at 1,947 points.

Oman's benchmark is closed on Wednesday due to a national holiday.

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