Kuwait hits 6-week high after elections

Small-cap stocks lift Kuwait's index to a six-week high, with retail investors more confident the government will follow through on plans to develop the economy following Saturday's parliamentary elections.

The vote proved divisive, with opponents urging people to shun the ballot box in protest at a rule change they say will skew the outcome in favour of pro-government candidates.

But equity investors hope a more pro-government parliament will be positive for Kuwait's economy and can help kick-start a long-stalled 30 billion dinars ($106.50 billion) development plan.

Abyaar Real Estate climbs 2.5 percent, National Ranges rises 2.3 percent and International Finance Co adds 5.6 percent.

This trio account for more than a third of all shares traded despite having a combined market value of less than $500 million - retail investors target these stocks because these names have a relatively small free float and so can be more easily moved than bluechips.

"It's a signal that retail investors have more confidence in the market," says Fouad Darwish, head of brokerage at Global Investment House.

"Retailers believe the government will now pursue long due infrastructure projects. The market should continue going up, although whenever there's a rally for a day or two people will try to take profits here and there. Overall sentiment is positive."

The index climbs 0.8 percent to 5,990 points, hitting its highest intraday level since Oct. 16.

The benchmark is up 6 percent since Nov.4's eight-year low, rebounding as state-owned National Portfolio Fund bought bluechip stocks.

Retail investors followed suit and are now cashing in some of these gains to reinvest in smaller cap stocks, Darwish adds.

Qatar's index drops 0.08 percent to 8,393 points.

Oman's measure climbs 0.2 percent to 5,544 points, easing away from Tuesday's two-month low.