Commercial Bank posts profit as Kuwait shares gain

Government seeking to boost economic growth through developing infrastructure.
Commercial Bank posts profit as Kuwait shares gain
INDEX RISE: Kuwaits benchmark index rose for the fifth day, helping lead gains in the Arabian Gulf region. (Getty Images)
By Bloomberg
Tue 27 Jul 2010 11:23 PM

Kuwait’s benchmark index rose for the fifth day, helping lead gains in the Arabian Gulf, as Commercial Bank of Kuwait and Boubyan Bank KSC returned to profit. Dubai shares declined.

The Kuwait Stock Exchange Index gained 0.5 percent to 6,685.4 at the close in Kuwait City, bringing the 5day advance to 2.9 percent. The measure has lost 4.6 percent this year.

Commercial Bank of Kuwait, the country’s second biggest bank by market value, climbed the most in a week. Boubyan Bank, the Kuwaiti Islamic lender, also rose after posting a profit. The Bloomberg GCC 200 Index advanced 0.5 percent.

Jasem Al Zeraei, head of institutional sales, NBK Capital, Kuwait, said: “Company earnings are positive, boosting the market with liquidity. There is more positive news from the government in the form of fiscal spending, spending on mega projects.”

Kuwait’s parliament June 30 approved a budget for the fiscal year through March 2011 that increases spending as the government seeks to boost economic growth by developing infrastructure.

The country’s inflation slowed to 2.8 percent in April from 2.9 percent the previous month, according to data posted on the Central Statistical Office website today.

In Europe, stocks rose for a sixth day as UBS AG and Deutsche Bank AG reported earnings that beat estimates and the Basel Committee on Banking Supervision softened some of its proposed capital and liquidity rules. Asian shares and US index futures also advanced.

Commercial Bank of Kuwait rose 1.1 percent to 910 fils. The lender posted a profit of $8 million in the second quarter after a loss of $8.06 million in the year earlier period.

Boubyan Bank increased 2 percent to 520 fils as it said second quarter profit was $4.86 million after a loss in the second quarter of 2009.

Dubai’s DFM General Index lost 0.7 percent to 1,498.78, the lowest close in almost three weeks. Bahrain’s gauge fell 0.4 percent.

Saudi Arabia’s Tadawul All Share Index advanced 0.9 percent, Oman’s MSM 30 Index increased 0.7 percent and Qatar’s QE Index gained 0.3 percent. Abu Dhabi’s gauge added less than 0.1 percent.

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