Kuwait Stocks Lead Middle East Drop on Global Growth Concern - BusinessWeek

Kuwait stocks lost the most in two weeks, leading a decline in Middle East markets, on concern Europe’s debt crisis will slow the global economic recovery and speculation Gulf earnings may disappoint. Israel shares fell. The Kuwait SE Price Index slid 0.8 percent, the most since June 14, to 6,571. Agility led the drop, slumping to the lowest since 2003, after U.S. federal prosecutors said the logistics company may still be overbilling the American government. Saudi Arabia’s benchmark lost 0.6 percent. The TA-25 Index declined 0.7 percent to 1,086.49, the lowest close since June 8, as Israel’s largest communications company, Bezeq Israeli Telecommunication Corp., retreated.

Global sentiment worsened last week as disappointing U.S. housing data and a surge in the cost to protect from a Greek default reignited concern about the economic recovery. The Stoxx Europe 600 Index had its first weekly drop in more than a month and the Standard & Poor’s 500 Index fell 3.7 percent. Crude rose the most in two weeks, while gold gained on speculation a weakening dollar will boost its appeal as an alternative asset.

“Europe’s problems appear to be ongoing and investors are losing interest, turning to commodities such as gold and petrol,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. In the Gulf, “there is some concern over second-quarter earnings.” Companies will start announcing second-quarter earnings next month.