Bank shares lifted the KSE market or price index in Kuwait by 0.99 percent to close at 7.032.1 points on Monday, with shares of Burgan Bank jumped 4.1 percent higher to close at 0.5 Kuwaiti dinar (1.78 U.S. dollar).
Stable oil prices above 81 dollars per barrel also helped the Kuwaiti bourse move up, along with Saudi Arabia’s stock exchange. The Riyadh-based Tasi index finished at 6,329.89 points, gaining 0. 47 percent. Shares of Saudi Basic Industries Corporation (SABIC), the world’s largest petrochemical firm, shaved a key resistance level at 93 Saudi riyals (24.8 dollars) and closed 1.88 percent higher at 95 Saudi riyals (25.33 dollars).
Rating agency Standard & Poor’s said it has assigned its “A+” long-term rating to a proposed bond issued by SABIC Capital, whose parent company SABIC is rated investment grade “A+/Stable/A-1.”
“The Kingdom of Saudi Arabia owns 70 percent of SABIC, which we consequently consider to be a government-related entity (GRE) under our criteria,” Karl Nietvelt, an S&P analyst in Paris, said in a statement.
“We qualify SABIC’s link with the government as ‘very strong’ and its role for the country as ‘important.’ The ratings factor in one notch uplift for potential extraordinary state support in case of distress,” the statement said.
In Doha, the Qatar Exchange closed 0.16 percent higher at 7,786. 49 points, whereas industry shares gained and financial overall lost value.
The stock markets of the United Arab Emirates (UAE) in Abu Dhabi and Dubai also advanced slightly. The DFM Index gained 0.36 percent, closing at 1,753.31 points. Bank Emirates NBD, the Middle East’s largest lender by assets, closed unchanged at 3 dirhams (0. 82 dollar).
Earlier in the day, Emirates NBD announced that it posted a net profit of 1.9 billion dirhams (517.7 million dollars) for the nine months ending on Sept. 30, 2010, down 39 percent from the same period last year.