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Fri 10 Oct 2008 09:37 AM

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Kuwait boosts investment in local bourse

Sovereign fund raises investments in stock funds, doubles ceiling of local bank deposits.

Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has increased investments on the local stock market to shore up the sagging bourse after a recent slide, state news agency KUNA said on Thursday.

Prime Minister Sheikh Nasser Al-Mohammad Al-Sabah told KUNA that KIA had undertaken several measures to support the bourse, including raising investments in eight stock funds.

KIA has also urged local listed companies in which it owns a stake to exercise their right to buy back shares, KUNA said.

KIA is major shareholder in many Kuwaiti companies including heavyweight Mobile Telecommunications Co. (Zain).

KIA has also doubled the ceiling of deposits at local banks in a bid to boost liquidity, KUNA said, without providing details.

On Wednesday, Kuwait's central bank cut the discount and repurchase rate to boost liquidity. (Reuters)