Shares in Kuwait, the Arab world's second-largest stock market, reached a new all-time high on Sunday, overtaking a previous peak set in February, before pulling back to close flat.
Market watchers said the Kuwait Stock Exchange index, which rallied in the past six trading sessions, was mainly buoyed by positive regional developments like the formation of a new interim government in neighbouring Iraq, as well as surging prices for crude oil, Kuwait's main revenue generator.
"We're talking about Kuwait, a country where more than 90 percent of revenues depend on oil, prices of which have risen to record highs which saves a lot for the national budget," said Walid al-Houti, an analyst at Securities House.
A report by al-Shall think-tank said Kuwait's oil revenues for the first two months of fiscal 2004-05 were 1.315 billion dinars ($4.47 billion), or half the public budget's estimate for oil revenue for the whole year.
The bourse index hit a record 5,372.10, overtaking its previous record high of 5,363.40 of February 23. But it ended the day with a marginal loss of 0.90 at 5,352.40.
The Kuwait index, which more than doubled in 2003, corrected lower from its February peak to as low as 4,802.80 on May 4 before rallying again.
Sunday's trade volume rose to 154 million shares from Saturday's 98.6 million. There were 22 gaining stocks vs 30 decliners with the minus column led by Kuwait Financial Services, down 25 fils, or 4.81 percent, to 495 fils.
Some pundits pegged the market rally to the return of big funds. Leading economist Jassem al-Sadoun, who heads al-Shall, told Reuters several factors, including formation of a new interim Iraqi government, helped Kuwait stocks rally, but he argued.
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