Kuwait's bourse tumbled 3.1 percent on Sunday, its biggest daily drop since July 2009, ahead of a demonstration called by opposition leaders to protest against planned changes to the electoral law.
Market participants said they believed state-linked funds were buying blue chips in an effort to support the market, as they have done during some periods of weakness in the past. But selling pressure was very heavy in small-capital stocks favoured by retail traders, who cut their exposure because they feared a confrontation between police and protesters on Sunday evening.
"The government was trying to stabilise the market today through the National Portfolio Fund, but the sell-flow was heavy," said a Kuwait-based trader who asked not to be identified. "There's only so much selling they can absorb."
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