Kuwait Index Falls to 6-Month Low on Global Growth Concern - Bloomberg.com

Kuwait stocks fell to the lowest level this year, leading a drop in Gulf markets, on concern the European debt crisis may spread and the U.S. economic recovery may slow. Oil fell below $70 a barrel.

Gulf Finance House EC, a Bahrain-based investment bank trading in Kuwait, lost the most since June 2. First Gulf Bank PJSC, the lender owned by Abu Dhabi’s ruling family, declined to the lowest since in six months. The Kuwait Stock Exchange Index slipped 0.7 percent to 6,664.7, the lowest close since Dec. 2. Abu Dhabi’s index lost 0.3 percent.

“Regional markets are still dampened by the lack of clarity on the crisis in Europe and by fears that growth in the U.S. economy may be slower than we thought,” said Kifah Maharmeh, general manager of Al Dar Shares & Bonds in Abu Dhabi. “The drop in oil prices continues to put a strain on Gulf Arab markets, as development in the region depends heavily on oil revenue.”