Kuwait Stocks Slump Most in Gulf Before News of Ruler’s Death
Kuwait’s Stocks Slump Amid Renewed Concern Over Emir’s Health
(Bloomberg) -- Kuwait’s Premier Market index dropped on Tuesday, extending its losing streak to a fourth session, amid concern over the condition of the country’s ruler, whose death was confirmed after the end of trading.
Losses accelerated during the session amid speculation regarding the health of Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, 91, who had been receiving treatment in the U.S. The gauge fell as much as 4%, before trimming the decline to 2.2% at close, the most among major gauges in the Middle East.
According to the constitution, the emir should be succeeded by Crown Prince Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, 83, a half brother who has served as interior minister and deputy chief of the national guard. Sheikh Nawaf has been acting emir since Sheikh Sabah left Kuwait for treatment in the U.S.
News that the speaker and prime minister left the national assembly session midway on Tuesday to meet the crown prince was “very unusual” and was followed by a “steep selloff” in the market, said Joice Mathew, head of equity research at United Securities in Oman.
Kuwaiti stocks had also slumped in July when the Emir underwent surgery before being flown to the U.S. for further treatment. The benchmark is down 14% for the year, compared to a 4% drop for the MSCI Emerging Markets Index, which the country is set to join in November.
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