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Thursday, 11 August 2011

Kuwait’s Stock Index Retreats to Seven-Year Low on Global Growth Concern - Bloomberg

Persian Gulf shares retreated, sending Kuwait’s benchmark stock index to the lowest level in almost seven years, amid concern Europe will fail to contain its debt crisis, trimming investor appetite for riskier assets.

Combined Group Contracting Co. (CGC), the Kuwaiti construction company, lost 1.2 percent and lender Al-Ahli Bank of Kuwait (ABK) fell for a second day this week. The Kuwait Stock Exchange Unweighted Index dropped 0.9 percent to 5,850.60, the lowest close since Aug. 25, 2004. The measure slumped 3.6 percent this week. The Bloomberg GCC 200 Index (BGCC200) of the region’s stocks slipped 0.2 percent. Dubai’s DFM General Index (DFMGI) rose 0.2 percent after losing as much as 1.4 percent earlier.

“Our markets are obviously following the volatility of global markets,” Ahmed Talhaoui, the Abu Dhabi-based head of investment at Royal Capital PJSC, said. “Local markets are entirely at the mercy of the global risk aversion.”