Kuwait heads for third loss before court ruling

Kuwait’s benchmark fell on a third straight session before an anticipated constitutional court ruling. (File photo: Reuters)

Kuwait’s bourse continues to drop in early trade before a constitutional court ruling expected later on Sunday, probably shortly after midday, on the country’s new electoral system.

Most of the market’s falls are due to a weak global environment and Saudi Arabia’s tumble on Saturday, but investors are also concerned that any negative court ruling could renew the political turmoil that hindered Kuwaiti economic policy-making and investment last year.

Kuwait’s benchmark falls 0.8 percent to 7,870 points, down for a third straight session to cut its 2013 gains to 32.7 percent.

The new electoral system was introduced by Kuwait’s ruler last year and appears to have succeeded in reducing tensions between the cabinet and a new parliament.

Analysts and diplomats have said it is unclear whether the court, which in the past has acted independently, will endorse the new system; the government warned on Friday that it would not allow unlicensed protest marches after the ruling.

 

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Last Update: Wednesday, 20 May 2020 KSA 09:41 - GMT 06:41
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