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Tuesday, 25 January 2011

MIDEAST STOCKS-Kuwait plan lifts banks; prices seen stretched | Reuters

Kuwait banks .KWBNK hit a 27-month high on Tuesday as traders bought in ahead of quarterly earnings, but valuations may have run ahead of fundamentals.

Banks stocks have surged since Kuwait last year unveiled a $104 billion infrastructure spending plan -- to be part-financed by banks -- but few details have since emerged.

"Given the sheer size of the plan, I would wait to see concrete signs that it has passed through all the necessary hurdles first," said Ibrahim Masood, senior investment officer at Mashreq Bank.