Wednesday 26 September 2012

MIDEAST WEEKAHEAD-Kuwait stocks may be supported by govt buying | Reuters

The long-drawn-out political deadlock between Kuwait's cabinet and parliament has hurt the stock market, but fund managers and analysts believe government-linked funds may have stepped in to support shares, and blue chips are reaping the benefit.

The market's index slumped to an eight-year low in mid-August, underperforming most other stock markets in the Gulf, largely because of the political situation.

Opposition legislators are boycotting parliament and accuse the government of trying to gerrymander voting districts for the next election, which could be held by the end of this year. In the meantime, much economic policy-making and many investment plans have been frozen.

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