The other five markets registered falls, including Muscat 3.4%, Dubai 2.2% and 0.50% for Doha.
Tadawul, which saw sharp declines in the beginning of 4.4%, later closed only 0.53% down, while Bahrain saw the lowest decline by 0.33%.
Governments urged to interfere
The interference of Kuwait’s investment authority to save the KSE has encouraged local governments to do the same through their sovereign funds.
According to analysts, government interference has become a necessity now, following the example of the US government which interfered to save its banking system.
In a meeting held in Jeddah, GCC central bank governors stressed that the gulf banking system will not be affected by the collapse of Lehman Brothers.
Dubai repeats yesterday’s scenario
Dubai Financial Market started the session with a sharp fall of 4% in the first 15 minutes with Arabtec down 11%, Emaar 7%, DFM 7% and Shuaa down 10%.
In the second half of the session the index started to gather momentum after local forces interfered and started to buy shares at low prices including Emaar, Arabtec and Union Properties.
The index managed to change its 4% decline to less than 0.25% with Emaar down 1.1% to hs7.13 from Dhs6.65, Arabtec 4.2% at Dhs11.25.
Abu Dhabi stays solid
The Abu Dhabi market managed to change its sharp decline into a considerable rise, pushed by strong and extensive buying orders on telecom, real estate and energy shares, while trading value jumped by more than 100% to reach Dhs1.1bn.
The strongest support came from Etisalat up 3.6%, Aldar up 1.1% trading Dhs439.6m, while Takaful, Emirates Driving and Abu Dhabi ship building saw a 10% rise.
Saudi: Uncompleted rebound
Tadawul market managed to stop yesterday’s sharp decline of 4% and in fact saw some leading shares move back into profit.
Tadawul also welcomed a new share today, Chemanol, which was listed under chemical sector.
Chemanol jumped by 39.5% in the first day and traded 50 million shares out of total shares of 226.4m on volume of SR5.5bn.
The decline of the banking and petrochemical sectors prevented the index from witnessing a considerable rise today.
Saudi French Bank fell by 6.6%, while all petrochemical shares fell except Sabic which moved up 1.1% and Kayan up 1.4%, while Al Lujain fell by 5.7%.
Mobily on the other hand rose by 5.1% after market authority approved the raise of its capital by SR2bn.
Kuwait: Investment authority saves market
The interference of Kuwait’s investment authority, the investment arm of the government, left a feeling of relaxation among traders and pushed the index up.
Leading shares registered a strong rise including KFH 3.6%, NBK 5.1%, and Kuwait Commercial 7.1% after the bank announced it would buy back 10% of its own shares.
Meanwhile Zain rose up by 2.5% while Global jumped by 6.8%.
Doha lowers losses after local support
Doha market managed to decrease its losses after buying orders by local and Gulf funds focusing on small shares.
Leading shares continued to put pressure on the market including Industries Qatar and QNB which fell by 0.86% and 3% respectively.
Trading value rose again to QR1.1bn and 25.1m shares including 16.2m shares to seven listed firms including Al Rayyan 2.3%, Naqilat 3.4%, Barwa 0.40%, Islamic bank 0.78%, while Industries Qatar and Qatar Commercial fell by 2.3% each and Gulf International 0.32%.
Muscat has biggest losses
Muscat stock market disappointed its traders by being the biggest loser among all Gulf markets ignoring the message sent by Capital Market Authority chairman Yahya Al Hajri in which he urged calm.
Doha market has given up the 8.000 benchmark after pressure from leading shares including Muscat bank, which fell by 5.5% despite trading OR1.6m out of total trading of OR7.2m.
Omantel fell by 1%, National Bank 5.1% and Al Anwar Holding by 6.6%.
Bahrain has lowest decline
Bahrain market saw the least decline among all Gulf markets by 0.33% despite giving up its 2.500 benchmark with pressure from banks particularly Al Salam which fell by 4.2%.
Trading value reached BD1m and 3 million shares including 1.2m to Ithmaar bank which rose by 3.7% and Batelco up 1.4%, GFH up 0.74%.